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by Ashraf Laidi
Posted: Feb 22, 2010 5:00
Comments: 3054
Posted: Feb 22, 2010 5:00
Comments: 3054
Forum Topic:
GBP
Discuss GBP
US retail sales fall 1.2% in May, ex-autos down 1.1%
Feds Plosser upbeat on growth, sell assets sooner rather than later
ECBs Bini-Smaghi: German will grow faster than Club Med; Warns China on FX rate
Rehn denies Spain to tap EU rescue plan
University of Michigan consumer sentiment index rises to 75.5 in June from 73.6 in May
US business inventories rise 0.4%, sales rise 0.6%
Greek PM: Clearly have decided against default or to leave the euro
Deutsche CEO Ackermann reverses stance on Greece; says see Greece repaying debts
S&P 500 rises 0.4%, Gold closes at $1226, oil falls $1.30 to $74.20
EUR/USD opened the US session at the top of the weeks range but profit-taking ahead of US retail sales pushed rates down to around 1.2125 before the data. Weak sales data raised jotters of a double-dip and risk aversion undermined prices for a time. EUR/USD edged to modest fresh lows around 1.2080 before stabilizing.
Profit-taking from short-term specs ahead of the weekend as well as fixing related sales of EUR/USD helped send EUR/USD down to test the 50% fibo of the weeks range at 1.1948 before a bounce Fibo of the weeks e. We end the day at 1.2100,
Cable fell to test its 61.8% retracement of the weeks range at 1.4505 before stabilizing. Weak industrial production in the UK helped stall the GBP bounce and send longs to the sidelines.
AUD sold off on risk reduction after the US data but regained its form and ends the week at its highs of 0.8505. Hopes that the AUD will be included in a revamped SDP from the International Monetary Fund helped boost it.
USD/JPY was a non-issue, trading between 91.20 and 80, influenced by intraday risk appetites.
Have a great weekend all. Happy World Cup!
go out the mkt and support frenchy...lool
As I said it rather in the forum my next target on cable is 1.4332, at this level it could bounce on its range or if it break this level we could see 1.40
We are edging below support at the 1.4511 level. Further support at 1.4506 was tested, the 61.8% retrace of the 1.4350/1.4760 rally. A break targets a return to 1.4350, at least.
As noted earlier, a move through 1.4350 should see, the charts tell us, a further 4 cent slide in the pound in the coming days
Yes, the benefits from so called efficiency-savings are never as much as claimed in advance. Sometimes they are actually counter-productive. All you are doing much of the time is just pushing the cost to someone else, sometimes to someone even less able to afford it.
Problem is, these re-negotiations take time and thus projected spending reductions won't be possible in the near-term.
Telegraph:
But Sir Peter, the efficiency adviser who previously worked for advised Gordon Brown, warned that while some projects could be scrapped now such as the ID cards others would take longer. "The Government moratorium on IT projects, that can happen now. You get the savings," he said. However, he added: "Renewing contracts will clearly take some time. We will get some savings this year and some in the next year. Similarly, the review on projects, it will take time. The cost that will make will be in-year, but modest, but can make an important contribution in the spending review."
Timing is a substantial issue given that the U.K. needs to bring its budget deficit down as soon as possible, in order to ease market concerns in regard to its debt levels. If the government wants to meet its austerity goal of 6.7 billion pounds in cuts, additional spending cuts will have to be made elsewhere.
Interesting that S&P moved higher again and USD last night didnt really exhibit further weakness. Ummmmmmmmmm what do you think of this one Mr Ashraf..........
Could it be the Asia to US session co-relation could be changing?
Ashraf