NZDUSD short it target 0.6690, then 0.6600 entry 0.6860 stop loss 0.7110 ************

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The EUR has managed a decent correction higher in London hours supported by a better tone in equity markets.  Spain’s IBEX has managed to push almost 1% higher, the Athen’s Composite is still out of favour its decline has been limited to just 0.19% at present.   Cleary the issues surrounding the budgets in Spain, Greece and Portugal have not disappeared over the weekend but the G7 Finance Ministers meeting did prompt European officials to show solidarity over Greece.  ECB President Trichet said he believed that Greece would meet tough new targets, French Finance Minister Lagarde said the Eurozone countries would make sure the Greek plan was implemented with Chairman of the Group of Eurozone Finance ministers Juncker indicated that Greece would not be forced to go cap in hand to the IMF.  While it is the interest of Eurozone officials to keep the markets calm, it is too early to say with conviction that Greece will ultimately not be forced to seek out support from the IMF.  Entrenched difficulties connected with collection of taxes in Greece and a system of accounting that can not presently be trusted mean that this morning’s reprieve will likely be short-lived.  This week the European Commission is expected to give its opinion on the Spanish budget.  In essence this is likely to be supported, but given the Spanish economy is likely to shrink again this year and unemployment could hit 20%, the implementation of budget austerity promises to be stormy.  EUR/USD bounced from the USD1.3625 area in Early London hours to an intraday high near 1.3712.  Full text »

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Fundamental Treasury Secretary Timothy F. Geithner said the U.S. is in no danger of losing its Aaa debt rating even though the Obama administration has predicted a $1.6 trillion budget deficit in 2010. “Absolutely not,” Geithner said, when asked in an ABC News interview broadcast yesterday whether a downgrade is a concern. “That will never happen to this country.” Geithner said investors around the world turn to U.S. Treasury securities and dollar-denominated assets whenever they are worried

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INTRA-DAY GBP/USD: +1.5613+ Last Update At 08 Feb 2010 08:33 GMT Despite cable’s marginal weakness to 1.5535 in European morning on cross selling in sterling, sub- sequent rebound suggests an intra-day low has possi bly been made n a minor retrace. to 1.5605/10, then 1.5623/30 likely but 1.5672 (NZ) wud cap upside. Turn long on dips with stop as indicated, break wud bring one more fall to 1.5510/13… Range Forecast +1.5590 / 1.5623+ Resistance/Support R: 1.5623/1.5672/1.5705 S:

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