Intraday Market Thoughts

Archived IMT (2011.03.11)

by Ashraf Laidi
Mar 11, 2011 11:18

US dollar strength spread in Asia and into Europe, dragging AUDUSD below the important Jan 11 trendline support of 1.0020s, now calling for 0.9920 prelim target, followed by 0.9870. Both GBP and EUR are hit hard vs. USD, but rising EURGBP indicates cable is the bigger loser as the sub 1.6 break paves the way towards 1.5920, followed by more important support at $1.5770s. The EU summit on expanding EFSF is due today, with Germany leading the Northern countries insistence to require stronger commitments from the peripheral countries before raising their loan guarantees. An 8.9 earthquake hit NthEastern Japan triggered major tsunami warnings into central America and Hawaii. Nikkei was down as much 5% before ending 1.7% down. EURUSD breaks below 1.3780s and is vulnerable to extended losses towards 1.3580s later in week in the event of a Friday close below 1.3770s. CANADA JOBS due at noon GMT exp +23K from +69K and unemp rate 7.7% from 7.8% allows the potential for 0.9820s in USDCAD. US retail sales due 13:30.


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