Intraday Market Thoughts

Archived IMT (2010.06.24)

by Ashraf Laidi
Jun 24, 2010 17:12

WHEN IN DOUBT REMAIN DOVISH. Yesterday's FOMC decision may have been uneventful but the statement did sound more dovish on two fronts: 1) downgrading "financial conditions" and 2)highlighting "depressed" housing starts. The record tumble in US April new home sales to 47 year lows was nearly double the 19 pct forecasted decline posted in our last IMT. The fact that US CEO confidence hit 4-yr highs and US home sales at 47 year lows will resurrect the debate of lagging vs. leading economic dynamics. We still see EUR retesting 1.1650, while the new Australian PM is not expected to impact the Aussie's trajectory in the same way as toppish copper prices and the upcoming election later this year. US indices remains below their 200-day MAs w/ SP500 well below 1111. WORLDCUP: US led Group C by scoring in injury time against a hesitant Algeria, followed by an improved England. ITALY IS ELIMINATED out of the tournament after a humiliating 3-2 defeat to minnows Slovakia. The Last time Italy failed to qualify for the 2nd round of the Wcup was in 1974....I'm tipping England to beat Germany but still favouring Holland to take it all.


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