Intraday Market Thoughts

Archived IMT (2010.07.30)

by Ashraf Laidi
Jul 30, 2010 16:40

GBP GAINS across the board, completing the 7th rising week out of the last 8 weeks in a week when the Bank of Englands mixed messages regarding inflation became apparent to the public. Contrary to the rest of the G5, UKs inflation remains well above target, thereby fuelling expectations of a rate hike, which in contrast to Fed emerging rhetoric hinting at prolonged QE. A break above $1.57, to call up $1. 574055-day MA, followed by $1.5870. EURGBP nears the 0.83 support50% retracement of the 0.8070-0.8530 rally. While stocks hover in and out of negative territory, FX is gradually moving against the US dollar after the 2.4% Q2 GDP, which is considered to be sufficiently positive for currencies to drag down the talked-down USD following Bullards dovish comments.


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