Technical analysis: Short Sterling

3

1
Short Sterling – March 2009
Wed, Jan 14 2009, 09:35 GMT
by Nicole Elliott
Mizuho Corporate Bank
Comment: UK Gilts ten’s-two’s, from the steepest in two decades at 215, collapsed to 160 basis points and over time should slowly flatten further. Two-year and Index-Linked Gilts yield 1.60%, ten-year another 160 basis points over, and about the same as Bunds. Whisper it, but the question as to who will go bankrupt next remains, and while this is the case interbank lending will remain frozen. Three-month Libor at 2.27% today is 30 basis points down from this time last week after the Bank of England’s 50 basis point cut (and promise of more if needed). The next question is whether we cut to zero in order to get Libor closer to where they would like it which looks like 1.50%. Make no mistake, these are truly emergency interest rate levels, all futures contracts priced over the mean price of the last decade at 95.000.
Strategy: Possibly attempt tiny longs at 98.550/98.495; stop/reverse below 98.190 for 97.650. Cover ahead of 99.000.
Published on
Wed, Jan 14 2009, 09:37 GMT
Archive
- 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
- Short Sterling – March 2010
Published On Wed, Oct 14 2009, 08:21 GMT
- Short Sterling – March 2010
Published On Wed, Oct 7 2009, 09:09 GMT
[ View All ]
Mizuho Corporate Bank
| 1-3-3, Marunouchi, Chiyoda-ku, Tokyo 100-8210
http://www.mizuho-cb.co.uk | Nicole.Elliot@mhcb.co.uk
Legal disclaimer and risk disclosure
The information contained in this page is based on or derived from information generally available to the public from sources believed to be reliable. No representation or warranty is made or implied that it is accurate or complete. Any opinions expressed in this paper are subject to change without notice. This page has been prepared solely for information purposes and if so decided, for private circulation and does not constitute any solicitation to buy or sell any instrument, or to engage in any trading strategy.
Related reports
Weekly Market Commentary - Fed, BOE and ECB kept rates on hold by Mizuho Corporate Bank
Fri, Nov 6 2009, 15:45 GMT
Friday Notes - The week of the central banks by UniCredit Group
Fri, Nov 6 2009, 12:23 GMT
Top Fundamental Stories - PPI Inclines Ahead of the Inflation Report by ecPulse.com
Fri, Nov 6 2009, 10:20 GMT
Market Session Snap-Shot by ACM - Advanced Currency Markets
Fri, Nov 6 2009, 09:55 GMT
Technical analysis: EuroDollar Futures - Eurodollar Future – March 2010 by Mizuho Corporate Bank
Fri, Nov 6 2009, 09:08 GMT
futures, boe, gilts
View All
Related content
Forex: GBP/USD steady at 1.6517 as BoE extends investment into UK economy
FXstreet.com | Fri, Nov 6 2009, 00:34 GMT
CURRENCIES: Dollar Dips; Euro, Pound Gain After Rate Moves
Dow Jones | Thu, Nov 5 2009, 14:45 GMT
3rd UPDATE: Pound Jumps After GBP25 Bln Asset Purchase Boost
Dow Jones | Thu, Nov 5 2009, 13:36 GMT
CORRECT:Pound Jumps After GBP25 Bln Asset Purchase Boost
Dow Jones | Thu, Nov 5 2009, 13:17 GMT
BOE Extends QE; Sterling Gains, Gilts Fall
Dow Jones | Thu, Nov 5 2009, 12:58 GMT
futures, boe, gilts
View All
FX Market Readings » Volatility is over
Thu, Nov 5 2009, 16:28 GMT
Francesc’s Weblog » New Highs in the European Central Bank and Bank of England Interest Rates Decision Live Coverage
Thu, Nov 5 2009, 16:26 GMT
FX Market Readings » expected market moves before and after BOE and ECB rate announcements events
Thu, Nov 5 2009, 11:34 GMT
The Advisor Weblog » BOE and ECB Live coverage
Thu, Nov 5 2009, 11:20 GMT
The Advisor Weblog » Starting the day
Thu, Nov 5 2009, 11:19 GMT
futures, boe, gilts
View All
Note: All information on this page is subject to change. The use of this website constitutes acceptance of our
user agreement. Please read our
privacy policy and legal disclaimer.
Trading foreign exchange on margin carries a high level of risk and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to trade foreign exchange you should carefully consider your investment objectives, level of experience and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading and seek advice from an independent financial advisor if you have any doubts.
Opinions expressed at FXstreet.com are those of the individual authors and do not necessarily represent the opinion of FXstreet.com or its management. FXstreet.com has not verified the accuracy or basis-in-fact of any claim or statement made by any independent author: errors and Omissions may occur.
Any opinions, news, research, analyses, prices or other information contained on this website, by FXstreet.com, its employees, partners or contributors, is provided as general market commentary and does not constitute investment advice. FXstreet.com will not accept liability for any loss or damage, including without limitation to, any loss of profit, which may arise directly or indirectly from use of or reliance on such information.
©2009 "FXstreet.com. The Forex Market" All Rights Reserved.