Intraday Market Thoughts

Archived IMT (2010.10.21)

by Ashraf Laidi
Oct 21, 2010 12:14

STERLING SEES THE FISCAL VALIDATION OF BoE QE2, which could start as early as December. $81 bln in spending cuts is no peanuts for a country barely showing positive growth and its housing sector largely skewed by London. The $1.6 double top in GBPUSD suggests $1.5650 will be retested for an eventual break towards $1.5350. As EURGBP soars to 6-month highs, testing the 22-month trendline resistance at 0.8915-20. But with escalating preoccupations from Eurozone officials about euro strength, GBPJPY (126.80) and GBPUSD (1.5650) appear as the preferred way to act against sterling.


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