Intraday Market Thoughts

Archived IMT (2010.05.12)

by Ashraf Laidi
May 12, 2010 9:07

Sterling's Tuesday rally was the first daily gain after 7 days of losses, as financial markets applaud the combination of a market-friendly Conservatives victory and the LibDems contribution to achieving a majority government. Considering LibDems opposition to stringent spending cuts, this will help allay concerns of Conservatives usual aggressive stance on spending cuts. UK MAR CLAIMANT UNEMPLOYMENT due at 8:30 GMT expected at -20K from -32.9K, unemployment rate seen at 8%. GBPUSDs recovery to $1.4990s would have no issues in extending past the $1.5020 resistance and onto $1.5180 in the event of a market-friendly jobless figures. TRADERS MUST BE AWARE OF the Bank of Englands quarterly Inflation tomorrow, which could dampen sterling gains if it reiterates that inflation will return below target. News that Morgan Stanley is being investigated for abusing it sales of derivatives may also weigh on risk appetite. EURUSD struggles to regain $1.2750s, at which preliminary shorts seen eyeing $1.2650s, followed by $1.2580.


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