Intraday Market Thoughts

Archived IMT (2011.03.24)

by Ashraf Laidi
Mar 24, 2011 14:20

More US data weakness (this time durable goods after further slump in existing/new home sales) making any USD gains short-lived. EURGBP spikes on broad GBP decline following a new slump in UK retail sales, now at the top of the 6-week channel. UK retail sales fell 0.8% in Feb following the 1.9% Jan increase. The recurring problem of falling sales volumes and rising stick prices (resulting from retailers passing on VAT hike to consumers) is taking away from GDP, which further complicates the consequences of any rate hikes from the BoE. MOODY's DOWNGRADED 30 Spanish banks on the basis that Spain is unable to assist all struggling banks. Another $15 bln is estimated to be needed by local banks. EURCAD remains intrack with further declines along this chart and AUDUSD nearing the top of the 1.0180s resistance, getting the attention of Aussie shorts for 40-50 pip targets. EURUSD seen capped at 1.4165 for now.


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