Intraday Market Thoughts

Archived IMT (2009.11.03)

by Ashraf Laidi
Nov 3, 2009 7:34

GBP deepens losses as RBS confirms will sell assets and govt to increase its stake by 84%, while Govt stake in Lloyds to stay at 43% as bank remains outside Asset Protection Scheme. GBPUSD tests $1.6330s, eyeing $1.6270, while upside capped at $1.6420. RBA did raise rates by 25 bps to 3.50% but signalled a slower pace at which it would withdraw its stimulus i.e. be less aggressive in raising rates. AUDUSD fell on disappointment that the RBA did not raise by 50 bps as well as the possibility that it could leave rates unchanged at the December meeting. SERIES OF LOWER HIGHS IN AUDUSD combined with the S&Ps' close below 1047 suggests risk aversion is here to stay. AUDUSD faces trend line resistance at 0.9120, with interim target at 0.8950. USDCAD to retest 1.0790 trend line resistance, followed by 1.0855.

 
 

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