Intraday Market Thoughts

Archived IMT (2011.03.14)

by Ashraf Laidi
Mar 14, 2011 1:09

The authorities are working overtime at maintaining normalcy in the global financial markets. days after Saudi Arabia reiterated its role as oil-pumper of last resort in the face of +$100 oil escalating out of MidEast & Nth African unrest, the Bank of Japan delivers its version of shock-&-awe of in 7 trillion yen ($85 billion) in money market operations (purchases) in order to stabilize liquidity following the Fridays massive earthquake and tsunami. The 7 trillion yen is about 3 times greater what was expected and by far as the biggest single-day money market operation in Japan. But Nikkei-225 is down 5%, Topix is down 7% and the dollar is regaining some stability after having added to Fridays losses in early Asian session on the back of those Japanese interventions. AUDJPY seen testing prelim resistance of 83.40s before likely to succumb to fresh declines. AUDUSD hrly stochasics remain in a clear negative crossover. DO NOT UNDERESTIMATE the effectiveness if central bank interventions in shaking off the weak and overleveraged participants in FX. Therefore, if you are finally convinced that the major resistance in AUDUSD and GBPUSD stands at 1.0190s and 1.6350s, then it is no point for sellers of these points to receive a margin call below these levels. While it does not necessarily mean that cable and Aussie will both reach this level


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