Intraday Market Thoughts

Archived IMT (2010.10.04)

by Ashraf Laidi
Oct 4, 2010 13:39

GBP GAINS as UK Sep PMI construction hit 18-month highs at 53.8 from 52.1, dragging lifting cable back above $1.58 and halting EURGBP at the 12-month trendline resistance of 0.8750. This was an unusually strong figure from the UK, considering the array of negative data lately. The figure was important in offsetting negative impact from PM Camerons remarks wanting the BoE to maintain the easing (see my entry on twitter/alaidi). EURGBP is NOT ONLY failing the trendline resistance but also showing a daily bearish engulfing pattern, suggesting preliminary losses towards 0.8570. *******TOMORROWs UK SERVICES PMI will be important in extending EURGBP pullback if the figures are better than expected and/or Eurozone services PMI will be disappoint. See the ECON CALENDAR for the release and expectations of these important PMI figures (due Tuesday) GBPUSD rebound is offset by USD stabilization, with $1.5880 still acting as a resistance.


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