Intraday Market Thoughts

Archived IMT (2011.03.02)

by Ashraf Laidi
Mar 2, 2011 15:20

ADP hit a 2-month high of 217k in February. Recall, the 247K increase in December was the highest since 2006. Whether this data means that the US jobs report will finally surprise on the upside remains to be seen. The report was good enough to boost equities at the expense of the US dollar. GBPUSD regains $1.63 for the 1st time since mid Jan, probing $1.6330 --76% retracement of the decline from the Aug 2009 high. EURUSD rallies on combination of overall USD damage and in anticipation of Thursday's ECB press conference, whereby JC Trichet could reiterate the prevailing hawkishness among the Executive Board, thereby setting up for $1.392s. Longer term technical eye face the same 3-year trendline resistance at $1.41. WATCH THE USD INDEX and the 76.35 trendline support. A close is needed below this level in order for the pair to be considered in the danger zone.


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