Intraday Market Thoughts

Archived IMT (2009.10.19)

by Ashraf Laidi
Oct 19, 2009 9:25

GBP renews declines and once again proves the only loser against the tumbling greenback. This time, comments from the Bank of Englands Adam Posen signalled an upcoming increase in the banks 175 billion asset-purchase program when he said Im not worried about overshooting inflation right now. While Federal reserve speakers are attempting to signal the beginning of withdrawing liquidity, the BoE is widely expected to prolong its asset purchase program when it ends next month. Separately, Ernst & Youngs Item Club said There could still be substantial pain and that the impact of the stimulus programs has been disappointing. GBPUSD proves another 5-week failure at $1.64, now eyeing interim support at $1.6230, with any recovery capped at 1.6320 for the London session. USDCAD eyes interim support at 1.0310 as oil retreats off its highs on the changeover to the new contract. USDJPYeyes 89.80 w/ trend line resist weighing on 90.70.


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