Archived IMT (2009.09.21)

Theres no change in our negative outlook on GBP and CAD as both currencies extend their sell-off particularly against the dollar. Aside from increased selling in equities, uncertainty with the future viability of UK banks (Lloyds and RBS), combined with the possibility for negative interest rates on UK bank reserves has broadened GBP selling. $1.6040 and 1.57 remain our intermediate term targets. USDCAD 4-hr faces interim pressure at 1.0810, a break of which will be necessary to see a 1.09 print, followed by the 1.10 resistance.