Archived IMT (2010.03.18)

FX MARKETS to soon realize that the 100-bp decline in the Greek-German 10-year spread was founded on "anticipation" of a Greek deal rather than an actual package, and will find little resistance in driving back down EURUSD towards its February lows of $1.34, followed by $1.32. A resolution over Greek aid is now unlikely before the March 25 EU Summit. Meanwhile, the Fed is due to end its purchases of $3.0 trillion in MBS this month, bringing its quantitative easing a step closer to the end. Such are the factors preventing EURUSD from regaining the all-important $1.3850 resistance. REGISTER for Ashrafs VANCOUVER SEMINAR this SATURDAY http://bit.ly/ acXvOH