Technical analysis: Short Sterling

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Short Sterling – March 2010
Wed, Nov 18 2009, 08:56 GMT
by Nicole Elliott
Mizuho Corporate Bank
Comment: Two’s/ten’s Gilt spread flattened as expected, with rates oneach leg moving in opposite directions. There should be more to come led by long dated yields dropping as investors realise that ultra-low interest rates are likely to persist for a very long time. Front-month money market futures should therefore rally towards official targets, helped by the forward element dropping out of the forward forward. This March 2009 contract, having set a new record high, is consolidating in a small ‘triangle’, poised to move on up again. Beware of potential year-end jitters though.
Strategy: Possibly attempt small longs at 99.230; stop below 99.080. Target 99.350 and then 99.450/99.520.
Published on
Wed, Nov 18 2009, 08:56 GMT
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- Short Sterling – March 2010
Published On Wed, Nov 18 2009, 08:56 GMT
- Short Sterling – March 2010
Published On Wed, Nov 11 2009, 09:50 GMT
- Short Sterling – March 2010
Published On Wed, Nov 4 2009, 10:00 GMT
- Short Sterling – March 2010
Published On Wed, Oct 28 2009, 09:16 GMT
- Short Sterling – March 2010
Published On Wed, Oct 21 2009, 08:36 GMT
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Mizuho Corporate Bank
| 1-3-3, Marunouchi, Chiyoda-ku, Tokyo 100-8210
http://www.mizuho-cb.co.uk | Nicole.Elliot@mhcb.co.uk
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