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Daily Forex Fundamentals |
Written by Saxo Bank |
Feb 22 12 10:43 GMT
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The More Things Change, The More They Stay The Same
With each passing day it becomes harder and harder to write an insightful comment...
The market is little changed from where we were yesterday and the pattern continues. The small exception right now is that stocks are leading currencies for a change and the commodity complex looks overdone.
News overnight from China, by way of their PMI was better, however it still fell short of the 50 level. Despite the better print regional and this morning European indices have taken a sideways lead.
I've honestly lost track of where the Greek situation is now and what new acronyms have emerged in the last 24/48 hours, only to say that EURUSD remains looking a little haggard at this stage. Attempts higher into 1.3300 have once again failed, however, the downside also looks relatively well bid with ACB's noted buyers into 1.3180/3200 dips. Stand aside is the call on this one for now, as my butterfly does all the work for me and eats Gamma.
The Cable this morning has taken a small tumble on the Bank of England minutes and expressions of desire to do 75 bn of quantitative easing rather than the 50 bn that was done. In truth however this is more to do with the EURGBP looking to test and perhaps perform a false break of 0.8435 resistance rather than a clean dovish Sterling move. Levels to keep an eye on in the Cable are 1.5690/60 with the latter being the important level to hold if Cable is to do any sort of about face on recent price action. Dip buyers are lining up.
The AUDUSD continues to grind lower and 1.0580 marks the line in the sand. While I'm not a fan of the cross at these levels, I think I would be encouraged as some other sharp guys out there, to scoop up erratic intraday dips below 1.0600, looking for 1.0680/0700. Stops are naturally placed and sitting below the 1.0550 area.
Outside of US home sales this afternoon there is little to really wet the appetite at the moment.
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Saxobank
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