INTRA-DAY GBP/USD: 1.4955

Despite intra-day rebound fm 1.4949 to 1.4988 in
Asian trading, failure to re-test y'day's 1.4993
high (NY) suggests further sideways move wud conti-
nue but as long as 1.4928 (reaction low) holds, cor
rective rise fm 1.4873 wud head twd 1.5017 later.

For st trade, buy cable on dips with stop below
said sup, break may risk weakness to 1.4900/05.



Range Forecast
1.4955 / 1.4985

Resistance/Support
R: 1.4993/1.5017/1.5031
S: 1.4928/1.4900/1.4873

Market Review - 10/03/2010 22:51GMT

Euro rebounds on improved risk appetite and Greece's plan to cut deficit

The single currency rebounded strongly on Wednesday after Greece submitted a report to EU on its plans to tame its budget deficit while the greenback slipped against most currencies but rose against the yen, as gains in global stocks brought a return of risk appetite, boosting demand for higher-yielding currencies.   
  
The euro traded with a soft undertone in Asia initially and briefly tumbled to an intra-day low of 1.3544 in European morning on disappointing German trade data. German January trade surplus was narrowed to 8.7 bln euro from 16.6 bln in December, much worse than median forecast of 16.0 bln. However, buying interest emerged above previous good support at 1.3530 and lifted euro. News later came in saying Greece told EU implementation of deficit plan is ahead of schedule. Price surged above Tuesday's high of 1.3636 on short-squeeze as well as cross-buying and hit an intra-day high of 1.3680 in NY mid-day before stabilizing.  
  
Versus the Japanese yen, dollar traded sideways in Asia with traders saying Japanese exporters had sold the euro and the dollar this week, repatriating some of their overseas earnings in the run-up to the fiscal year-end on March 31. However, the pair's weakness was limited by speculation that the Bank of Japan may take measure to ease monetary policy as it remains under pressure to pull the country out of a nagging deflation. The greenback made an upside break in European morning and rose on improved risk appetites due to firmness in global stock markets. The pair rallied to an intra-day high of 90.83 in NY morning before retreating due to profit taking.  
  
The aussie rose to its highest level in seven weeks after a report showed employers added jobs for six straight month. Positive jobs outlook together with supportive data from China which showed the country's exports increased the most in three years lifted the currency in Asia and Europe. Aussie hit a 25-year high against the pound and the strongest since 1997 versus the euro in the Asian morning as central bank Assistant Governor Philip Lowe said growth will likely be at or above average the next couple of years. Aussie surged to an intra-day high of 0.9193 in NY mid-day before retreating.  
  
RBNZ kept its cash rate unchanged at at record low of 2.5% as wildly expected and reiterated that a start to higher rates is likely around the middle of the year. Despite displaying apparent strength before the rate decision (rising to as high as 0.7100 in NY mid-day), price tumbled to 0.7010 after the announcement on profit taking.  
  
Economic data to be released on Thursday include Japan GDP, Australia employment change, unemployment rate, Swiss SNB rate decision, US jobless claims, trade balance, Canada capacity utilisation, export, import, new house price index and trade balance.

Market Review - 09/03/2010 22:52GMT

Euro declines on debt woes and Fitch's comments

The dollar traded higher against most major currencies except the Japanese Yen on Tuesday. The safe-haven yen rose broadly amid Japanese repatriation flows while the single currency fell on concerns peripheral euro zone economies could face debt problems similar to those of Greece.  
  
Euro extended Monday's decline against the greenback after staging a brief bounce to 1.3636 in Asia with reports circulating that Russia and BIS had been notable buyers. The recovery didn't last long and downbeat comment from Fitch Rating caused the single currency to tumble an intra-day low at 1.3537 in NY morning before rebounding to around 1.3617 in NY afternoon. Fitch claimed that Portugal's gradual approach to fiscal consolidation to 2013 is a concern and short term outlook for Greece may be okay but long term outlook remains open to question. Despite the late rebound, the single currency closed the day down over 0.29%  
  
Versus Japanese Yen, the greenback traded with a soft undertone in Asia on news that Japan's leading index rose for the eleventh consecutive month in January. A preliminary report showed the index stood at 97.1 up from 94.7 in January while the index was forecasted to be 96.6. These data together showed Japan's economy remained on a recovery path. Driven by an improving economic outlook and repatriation flows, the pair reached intra-day low of 89.63 in European morning before rebounding to around 90.05 in NY afternoon. The pair eventually closed the day falling just less than 0.4%.  
  
Poor RICS housing data and Moody's warning of possible downgrades to UK banks/lenders had kept cable under pressure throughout the Asian trading session and the pair soon penetrated Monday's low of 1.5031 in Asia mid-day. Worse-than-expected trade picture and comment from Fitch Rating also fueled the downward movement of sterling as U.K. trade balance was recorded at -7.98 billion pounds (forecast was -7.00 billion pounds) which was the biggest trade gap since 2008. These disappointing information raised further concerns about the strength of the country's economic recovery and cable fell sharply to as low as 1.4936 at NY opening before recovering.  
  
Economic data to be released on Wednesday include Australia westpac consumer confidence, Japan domestic CGPI, machine orders, CPI final, export, HICP final, import, trade balance, current account, U.K. industrial production, manufacturing production, U.S. wholesale inventories and fed budget.