Intraday Market Thoughts

Archived IMT (2011.03.23)

by Ashraf Laidi
Mar 23, 2011 10:44

Bank of England minutes of March meeting continued to show the same 6-3 vote on interest rates, with Sentence, Dale and Weale asking for rate hike at +50 bps, +25bps and +25 bps respectively. Sterling is on the backfoot after disappointing the hawks that there was not a fourth hawkish dissent. The cenbank raised its inflation forecast to as high as 5%. Chancellor Osborne will announce the UK Budget for Growth today focusing on tax breaks on corporations and fuel duty as well as a plan for first time home buyers. Sterling on the backfoot, falling to $1.6280s while EURGBP bounced off the 0.8650s trendline support (Feb 18) now eyeing a possible breakout of 0.87 for 0.8730. EURO TRADERS await the vote from Portugal's Congress on austerity due at about 17:00 GMT (12:00 ET). Discussions to start at 15:00 GMT. In the event that austerity is rejected, PM Socrates could end up without govt, which raises the possibility for Portugal to ask for a bailout at tomorrows EU summit. EURUSD has shied away from the $1.4280 trendline resistance and is not expected to break out of it. USDJPY remains stuck at 81. **** will have a BOOTH AT THE LONDON TRADERS EXPO ****** on April 8-9, 2011. Ashraf will conduct On-Booth Presentations, present a 1-hour seminar (Apr 9 14:30-15:30) and moderate a currency panel among 3 FX analysts. Register Free here: First 20 visitors to the booth will obtain 2 free weeks to Ashraf's upcoming Premium FX Service.


Latest IMTs