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ECB may AvoiD RaTE CuT
Greece bailout deal is almost done. Considering the understanding reached on almost all the major issues disagreement on pension cut will also be resolved, which has more to do with politics rather than any major economic impact.
Another positive development from Greece’s perspective is the news regarding ECB agreeing to swap Greek bond at less than face value that will help Greece to reduce its debt. These bonds were purchased by ECB from secondary market, which was not violating the rules and is easier to transact. ECB would exchange its Greek bond holdings with bond issued under European Financial Stability Facility (EFSF) that means ECB will bear the loss
The agreement will help to calm the Germans and it would be easier for ECB to disburse the funds to Greece that faces Feb 13 deadline.
Meanwhile, focus will gradually shift towards ECB policy announcement, which could maintain current level and hence, rate should remain unchanged for the moment, as Greece that is a bigger issue seems to be settling down and ECB may prefer to hold back its important monetary tool in its sleeves for next time. Traders/Investors will also be keen to have Draghi’s perspective on the ongoing issues and will try to get clue from his press conference.
Euro @ 1..3302 = We have been witnessing a perfect move as Euro yesterday made two attempts as per my call, but could not break 1.3295 on the upside, then dipping to hit 1.3235 on two occasions and then bouncing back nicely. Now Euro looks good to hit target 1.3330. However, I will be extremely cautious above 1.3350, as any spike above that levels would be good opportunity and safe level to buy Euro for a large drop, crucial level to watch will be Friday’s closing above 1.3420, which is unlikely to happen and weekly close below 1.3210, will provide ideal to make big money.
FEB 08 - DollaR BiaS on ThE DownSidE
http://www.forexstreet.net/profiles/blogs/dollar-bias-on-the-downsi...
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Comment by asad rizvi on February 9, 2012 at 9:43am
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GBP @ 1.5851 = Cable looks good buy around 1.5840 and shouad hold 1.5810, a break of 1.5890 could push it towards 1.5920 or else.1.5780
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Comment by UmairButt on February 9, 2012 at 1:00pm -
hello sir what about eu and gold today?
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Euro @ 1.3253 = Euro is likley to find support around 1.3235 zones until Draghi speaks. But failure to break 1.3285 risk for a downside test of 1.3210 and convincing break of this level would Euro towards 1.3120.
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GBP @ 1.5865 = If you went long Cable around 1.5840 you may have taken profit. Buying GBP is not prefered anymore, will wait for a break of 1.5890 to sell around 1.5910-20 is seen. If 1.5820 surrenders next is 1.5780
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JPY @ 77.31 = Yen has strong resistance around 77.45-zone and will soon exhaust, should hold for re-test of 76.85-90 by tomorrow morning
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GBP @ 1.5774 = Trarget 1.5780 comfortably met. Would wait to buy Cable around 1.5730-40 zones, for a test of 1.5780-90 zones. Stops 1.5702......More lateR
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Euro @ 1.3281 = Looks a good sell around 1.3298-03 for 1.3240 or else 1.3335 is the key level to watch
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GBP @ 1.5835 = has the ability to run up to 1.5877-82 zones on break of 1.5845. Suggest selling if seen for 50 pips
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