Intraday Market Thoughts

Archived IMT (2011.01.25)

by Ashraf Laidi
Jan 25, 2011 16:43

EUR BOOSTED BY STRONG DEMAND OF the EFSF EUR 5 bln bond issue thanks to reportedly strong demand from Asian investors (Japan govt buying 20% of the issue). The EFSF is the Eurozone bailout fund, designed as its own bond issue and not representing ant individual sovereign nation. But EUR may run into increased resistance as USD shows gradual sign of stabilization. GBPUSD eyes prelim target of $1.5660 ahead of Mervyn Kings speech at 19:40 GMT (bounce seen capped at $1.5860s). Aussie is still seen testing 0.9870, which should clear the way for 0.9720. My bearishness in the Aussie is moving into a higher level of confidence as global equities begin to falter (see what was said about the last time Dow-30 rose 8 consecutive weeks). Gold gradually making its way close to $1,300, with 1,285-89 as the prelim target. Silver seen testing $22.70. ARABIC SPEAKERS can watch Ashraf's interview on Alarabiya TV discussing UK GDP, interest rates and the 2 types of inflation (Cost Push & Demand Pull)


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