Intraday Market Thoughts

Archived IMT (2009.12.08)

by Ashraf Laidi
Dec 8, 2009 14:21

Both USD & JPY rally against all major currencies, with JPY OUTPEFORMING ALL CURRENCIES (USDJPY testing 88.15). GBPUSD tumbles sharply after UK Indus production & manuf output both fell by more than expected (we warned you in previous IMT). The USD recovery intensifies as EURUSD breaks well below $1.48 and USDX jumps past 76. GOLD drops $80 from its $1,225 high. We would be particularly vigilant with a close below $1,070, which would mean a 13% decline from the high. Since January, gold had never fell more than 13% from its cyclical high, thus greater scrutiny will be drawn beyond this threshold. GBPUSD testing 50% retracement at 1.6285 and could extend losses towards $1.6150 on Wednesday's anticipated UK Budget.


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