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Technical analysis: Short Sterling
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Short Sterling – March 2009
Wed, Jul 23 2008, 09:38 GMT
by Nicole Elliott
Comment: Gilts have held up better than Bunds, narrowing the yield spreadbetween the two as expected. Next their yields over US Treasuries should start shrinking too. Consensus opinion is that the credit crunch will last another 12 months or so, explaining why the June09 contract is fractionally higher than the others (if a very half-hearted). Open interest is about one third of last year’s peak, once again underlining the loss of speculative capital and cautious prop trading. Six-month Libor at 5.99% remains steady in a semi-functioning environment. The corrective rally in this futures contract has retraced a third of the drop since February and is consolidating in a fat Ichimoku ‘cloud’. We are still watching for signs of topping prior to a drop back down to the 93.650 area.
Strategy: Attempt shorts at 94.250, adding to 94.340; stop above 94.460. Add to shorts on a daily close below 94.150 for 93.950 short term and probably 93.650 further out.
Published on Wed, Jul 23 2008, 09:41 GMT
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- Short Sterling – March 2009
Published On Wed, Nov 26 2008, 09:56 GMT - Short Sterling – March 2009
Published On Thu, Nov 20 2008, 12:38 GMT - Short Sterling – March 2009
Published On Wed, Nov 12 2008, 09:48 GMT - Short Sterling – March 2009
Published On Wed, Nov 5 2008, 09:27 GMT - Short Sterling – March 2009
Published On Wed, Oct 29 2008, 09:44 GMT
Mizuho Corporate Bank
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