Intraday Market Thoughts

Archived IMT (2010.01.27)

by Ashraf Laidi
Jan 27, 2010 16:31

State of the "Eurozone" Union Weighs on EUR. As Greek-German 10 yr spread soaring past the 2009 record highs of 3.20% and Portugals disappointing budget prompting talk of a credit downgrade, the anti-EUR trade continues to broaden in FX markets. Year-to-date, EUR has underperformed all major11 currencies with the exception of DKK & NZD, falling 2% vs. EUR & GBP and 6% against JPY. The fact that the USD Index has now breached above its 200-day MA and the euro falling below its multiple trend measures (below its 50, 100 and 200-day MAs) for the first time since April, boosts FX markets to probe the $1.38 target. $1.4150 becoming considerable ceiling and days are numbered for the 1.4015 support, allowing for 1.3970.


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