| Action Insight Mid-Day Report |
Sterling Weighed Down by Dovish BoE Sterling was weighed down by dovish BoE inflation report and comments from Governor Mervyn King and pared earlier gains. BoE King said that "although the MPC last week announced a pause in its program of asset purchases, it is far too soon to conclude that no more purchases will be needed," suggesting the bank might not be done with quantitative easing yet. The quarterly inflation report released today suggest that the bank will keep rates at record low of 0.5% until at least next year. Inflation is to peak at about 3.5% this year, before falling back underneath its 2.0% target level. BoE also revised down the growth forecasts to about 3.2% yoy in the second quarter of 2011, compared with about 4% previously. Full Report Here... |
| Special Report |
BOE Inflation Report: Downward Revision in Growth and Inflation Forecast, More Easing Highly Likely At the February Inflation Report, the BOE unveiled downside risks to economic recovery. The MPC members believed that growth in the United Kingdom has been and will continue to be driven by the considerable stimulus from the easing in monetary policy, global growth and depreciation of sterling. However, spare capacity is likely to persist over the forecast period, weighing on the general price level. Full Report Here... |
| Elliott Wave Analysis |
Trade Idea: EUR/JPY - Buy At 122.30 Although the single currency rose marginally to 124.28 this morning (yesterday's high is 124.18) , as euro has retreated from there, suggesting further consolidation would take place and weakness to 123.00 cannot be ruled out, however, minor support at 122.30/36 should attract renewed buying interest and bring another rise,. Early breach of 123.33 resistance signals the wave v of the c leg from 134.37 has possibly ended at 120.70 and bring correction of recent decline towards 124.45 (wave iii trough) and then towards 125.00. Full Report Here... Trade Idea: AUD/USD - Sell At 0.8845 Yesterday's rebound adds credence to our view that further consolidation would be seen and we are keeping our count that minor wave iii of recent C leg decline from 0.9331 has ended at 0.8578 and consolidation would take place in wave iv for recovery towards 0.8846 (38.2% Fibonacci retracement of wave iii from 0.9280 to 0.8578), however, renewed selling interest should emerge there and bring another decline later. Full Report Here... |
| Featured Technical Report | Market Highlights |
GBP/USD Mid-Day Outlook Daily Pivots: (S1) 1.5603; (P) 1.5675; (R1) 1.5788; More GBP/USD falls sharply today after recovery was limited at 1.5763. The development argues that recovery from 1.5534 is possibly finished. Intraday bias is cautiously on the downside for the moment. Break of 1.5534 will confirm fall resumption for 100% projection of 1.6875 to 1.5829 from 1.6456 at 1.5410 next. On the upside, though, above 1.5763 will bring more consolidations first. Nevertheless, we'd still expect upside to be limited by 1.5849 resistance and bring another fall. Read more... All Technical Outlook Reports | Daily Top Movers | Top 5 | Current | Last | Change
(Pips) | Change
(%) | | GBPJPY | 140.11 | 140.94 | -83 | -0.59% | | GBPUSD | 1.5628 | 1.5717 | -89 | -0.57% | | GBPCAD | 1.6660 | 1.6746 | -86 | -0.52% | | GBPCHF | 1.6656 | 1.6718 | -62 | -0.37% | | EURJPY | 123.31 | 123.74 | -43 | -0.35% | Last Updated: Feb 10, 13:00 GMT Currency Heat Map Daily View | USD | EUR | JPY | GBP | CHF | CAD | AUD | | USD | | | | | | | | | EUR | | | | | | | | | JPY | | | | | | | | | GBP | | | | | | | | Last Updated: Feb 10, 13:00 GMT |
| Economic Indicators Update |
| GMT | Ccy | Events | Actual | Consensus | Previous | Revised | | 23:30 | AUD | Westpac Consumer Confidence Feb | -2.60% | -- | 5.60% | | | 23:50 | JPY | Machine Orders M/M Dec | 20.10% | 8.00% | -11.30% | | | 23:50 | JPY | Machine Orders Y/Y Dec | -1.50% | -10.80% | -20.50% | | | 23:50 | JPY | Domestic CGPIY/Y Jan | -2.10% | -2.30% | -3.90% | | | 9:30 | GBP | Industrial Production M/M Dec | | 0.20% | 0.40% | | | 9:30 | GBP | Industrial Production Y/Y Dec | | -4.10% | -6.00% | | | 9:30 | GBP | Manufacturing Production M/M Dec | | 0.30% | 0.00% | | | 9:30 | GBP | Manufacturing Production Y/Y Dec | | -3.00% | -5.40% | | | 10:30 | GBP | BoE Quarterly Inflation Report | | -- | -- | | | 13:30 | CAD | Trade Balance (CAD) Dec | | -0.2B | -0.3B | | | 13:30 | USD | Trade Balance Dec | | -35.8B | -36.4B | | | 15:30 | USD | Crude Oil Inventories | | 1.4M | 2.3M | | | 19:00 | USD | Monthly Budget Statement Jan | | -66.2B | -91.9B | | | -- | GBP | NIESR GDP Estimate Jan | | -- | 0.30% | | |
| Suggested Readings |
Fundamental Highlights Technical Highlights |
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