 | |  | | Stops Below 1.9200] London, March
11: A 1.9200 plain-vanilla option rolls off at today"s NY cut (15:00GMT), with
demand expected to emerge at the strike level.
Some stops are touted below 1.9200, and these could depress the rate towards
1.9175 (Monday"s North American session high) if triggered. A break below 1.9200
could also spur further profit-taking on long positions (GBP/USD scaled a 2005
peak of 1.9327 on Tuesday).
Pre-1.9200 support is located at 1.9212 (Asian session base). Resistance runs at
1.9248 (Asian session peak), 1.9276 (yesterday"s post-US initial claims high),
and 1.9305 (yesterday"s pre-MPC rate verdict top).
Today"s key event risk is the 13:30GMT unveiling of the size of January"s US
trade deficit. The bigger the deficit: the worse for the USD. $56.5bn is IFR"s
median forecast.
News-wise: the UK House of Lords is continuing to defy the Commons re: the
government"s terror bill (BBC website). --Robert.Howard@thomson.com |  |  |  |  |
|