Intraday Market Thoughts Archives

EUR & GBP SWAP ROLES with AUD & CAD against the USD. Both EUR & GBP are losing ground against the US currency after holding firm earlier in the week, while AUD rebounds towards the key resistance of 1.1050s after falling victim to the MidEast-driven sell-off in equities earlier in the week. While EURUSD broke well above the $.3750s resistance (1.3830s), it risks closing the WEEK below this level, in which case the pair may find its path back towards 1.3550s. GBP gets slammed after an unexpected downward revision in UK Q4 GDP to -0.6% from -0.5%. GBPUSD, which never made it above 1.6250s despite the emergence of a 3rd BoE hawk, is now below $1.6040s. And although EURGBP jumped above 0.8550s, it remains under the top of the weekly wedge as seen in this chart (0.86). http://chart.ly/82qkyja ASHRAF REMAINS ON TRAVEL, and shall return mid next week when the frequency of the updates returns to normal.

Ashraf's take for Yahoo ! Finance's Tech Ticker on the MidEast " From Bahrain to Libya: It could be worse" http://yhoo.it/ejY6mA

QUICK UPDATE ON THE MARKETS as I enter my 3rd day of the NY Trading Expo. In the aftermath of the US Bank Holiday, we see more of the same; AUDUSD's failure to close above the previously mentioned resistance of 1.0145-50s, EURUSD's inability to regain 1.3750s cap (previous left shoulder and emerging right shoulder) and EURGBP's 2-step-up-3-steps-down pattern nearing the 0.8350 wedge support, making its way closer to 0.81 and the ultimate objective of 0.79 . GBPUSD drops below 1.62 despite remarks from BoE's Martin Weale stating that a small rate hike now would avert a bigger move later on. MOODY's CUT JAPAN's AA2 govt rating outlook to negative.