Intraday Market Thoughts

Archived IMT (2009.12.09)

by Ashraf Laidi
Dec 9, 2009 18:49

The US DOLLAR is little changed from where it stood 24-hours ago, but YEN STRENGTH extends across the board, dealing further damage to EURJPY, AUDJPY and EURJPY. The lower highs in AUDJPY and NZDJPY have formed a clear downward trend line from the Oct 23 high and daily stochastics suggest prolonged losses ahead; 78.50 and 61.45 are the looming targets for the pairs. GBP damage resulted from Chancellor Darlings 50% tax levy on bank bonuses exceeding 25,000, which goes into effect immediately. The combination of spending cuts and additional taxes hinders GBP from both a spending multiplier and business impact. EURUSD is set for its biggest weekly drop since March. Next target stands at $1.4490, followed by $1.4180, especially as gold nears our $1.070 target. RBNZ decision (20:00 GMT) widely expected to keep rates unchanged at 2.50% as the central bank vocalizes its efforts to prevent NZD weakness. EURCAD breaks below 61.8% retracement of 1.5535, risking to call up 1.54.


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