Intraday Market Thoughts

Archived IMT (2009.09.09)

by Ashraf Laidi
Sep 9, 2009 18:41

Sterling weakness persists across the board on fears that the BoE tomorrow could move towards negative interest rates on bank reserves and/or requiring banks into holding higher levels of short-dated gilts, thus pressuring yields into negative territory. The main issue has been for the BOE to force banks into lending their reserves or buying assets, as opposed to hoarding them. GBPUSD once again fails to breach above $1.66 and settles at 1.6540s in NY lunch. EURUSD unable to close above $1.46 and the $1.4627 resistance--61.8% retracement of the move from the 1.6050 high to the 1.2327 low.


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