Archived IMT (2010.04.22)

GBPAUD consolidation enters its 4th week, but a perfect storm aiding the cross would be a favourable GBP outcome from tonights UK election debate as well as soft Aussie data, such as weak CPI next week. Tory officials have been vocal at indicating that a strong showing by the LDP would drag the country into hung parliament to the detriment of the currency. Will David Cameron and Gordon Brown aim at reducing Nick Cleggs lead by attacking him at the debate? Any signs of Cameron coming out ahead in the debate would boost GBP, while a strong showing from Brown is to have the opposite effect. GBPAUD is seen supported at 1.6450, while prelim resistance starts at 1.6680, followed by 1.6760. GBPUSD extends recovery, but pressure seen emerging at $1.5480, followed by 1.5540.