Intraday Market Thoughts

Archived IMT (2009.01.16)

by Ashraf Laidi
Jan 16, 2009 14:57

Dollar drops across the board as the combination of falling inflation (lowest annual core CPI since 1954) and deteriorating industrial production justify the Feds zero interest rate policy, which is a double negative for the US currency. A third reason weighing on USD is the improvement in risk appetite, fuelling gold back above $830 after proving it could hold above the 2-month TL support of $805. I remain sceptical with the strength of the equities rally and the pullback of the USD. $1.3380 and $1.5050 in cable remain key obstacles for the day.


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