Intraday Market Thoughts

Archived IMT (2011.03.02)

by Ashraf Laidi
Mar 2, 2011 8:00

Gold broke to new highs at $1434/oz. Silver hit $34.70s even as USD rose against all currencies with the exception of the JPY. The accompanying sell-off in equities was the fundamental reason to the stabilization in the USD, while the technical support for USDX held up after regaining 77. I mentioned in Monday's IMT that any deepening of USD bearishness would be confirmed in the event of a close below 76.50. US and European bourse shrugged off strong PMI & ISM manufacturing data as MidEastern stocks tumbled by as much as 7% (Saudi Arabia) on fears of planned Day of Rage protests on March 11 in the worlds second biggest oil producer. The divergence between AUD pairs and gold also highlights the unease of global equities. Aussie Q4 GDP rose 0.7% q/q from 0.1%. EURCAD and NZDCAD remain preferred shorts against CAD, EURGBP is hardly moving from its 0.85-0.846 range but still on daily & bearish formation. Markets turn to UK construction PMI at 9:30 am GMT (exp 53.3 from 53.7) and US ADP at 13:15 (exp 184K from 187K)


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