Spot Forex: Latest Headlines
Posted 7/30/2010 3:18:00 AM Having peaked around 5 mth highs near 1.5663 yest, the [CABLE] rally
that has consumed trade this week appears to be losing some momentum as
the week draws to a close. The pair has now retraced over 50% of the
1.0744-1.4228 fall, leaving techs largely neutral. To this end, a break
above yest's high should see an extension to 1.5816, while a loss of
1.5545 will open up corrective risks. We tend to favour the upside this
session, indeed, the pair showed resilience in the face of terrible
housing data yest and latest mortgage approvals, while ongoing talk of
hefty month-end Usd sales is also facilitating modest headline gains in
early trade. M&A news could prove Gbp-positive after the FT announced
that Cheung Kong Infrastructure are to buy EDF's UK electricity network
business for GBP5.8bn. Late, US GDP will act as the main driver of trade.
07:05 GMT - Only a limited, temporary negative reaction it seems to the Moody's
headlines on Spain (AAA rating may go down a bit) in [EUR/USD]. Literally
buoyant EU data over the last week or so, contrasting with more economic
numbers woes and now fiscal concerns out of the US continue to drive this
market higher. It does not seem to overly matter whether it is a risk
on/off market or driven by Dollar aversion, the Euro has stayed a relative
broad winner (apart from the Yen most recently) and if fix talk has any
truth it should further underpin here today. Options players supposedly
looking even higher towards 1.3250 in the next week or so, although it is
worth noting that a number of late Jun/early Jul buyers here were looking
to take profit into 1.3100 so do not rule out some profit taking here
today Copyright © 2010, Informa Global Markets
Reproduction of Informa Global Markets in any form is prohibited except with the prior written permission of INFORMA GLOBAL MARKETS. Because of the possibility of human or mechanical error by INFORMA GLOBAL MARKETS's sources, INFORMA GLOBAL MARKETS or others, INFORMA GLOBAL MARKETS does not guarantee the accuracy, adequacy, completeness or availability of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information. INFORMA GLOBAL MARKETS GIVES NO EXPRESS OR IMPLIED WARRANTIES, INCLUDING, BUT NOT LIMITED TO, ANY WARRANTIES OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE OR USE. In no event shall INFORMA GLOBAL MARKETS be liable for any indirect, special or consequential damages in connection with subscriber's or others' use of INFORMA GLOBAL MARKETS.
|
|
|
