Intraday Market Thoughts

Archived IMT (2011.01.18)

by Ashraf Laidi
Jan 18, 2011 14:35

Sterling regains $1.6 as UK inflation hits an 8-month high of 3.7% y/y leading to further speculation about a BoE rate hike. While I disagree with such speculation, it does not take away from the improving technicals in GBP vs USD, AUD and NZD. Cable eyes 1.6130s with 1.6040s an interim target. EURUSD regains $1.34 amid broadening USD weakness, but EURGBP was dragged down to 0.8330 to confirm the downtrend for an eventual 0.8250 and 0.8150. A close above $1.34 is technically likely to add to fresh gains towards $1.38. The fundamental doubts in the Eurozone partly emerging from the extension of the size of the European Financial Stability Facility are being shadowed by rallying global equitiesdespite a revenues miss from Citigroup.


Latest IMTs