Archived IMT (2010.07.22)

UNEXPECTED DECLINE IN CANADIAN June retail sales (-0.2% from prev -0.2%) and the 37K jump in US jobless claims to 464K is failing to put a dent in US equity futures but is weighing considerably on CAD as USDCAD pushes up to 1.0460s, testing the 1.0475 trend line resistance on the 4-hourschart. CAD traders await the Bank of Canadas Monetary Policy Report (10:30 am EDT, 14:30 GMT) for further detail on those downward growth revisions by the BoC. A break of 1.05 would likely to be accompanied by deteriorating risk appetite, which is not the case at the moment as Dow-futures are +107 pts. Also watch oil prices retreating back below 200-day MA of 77.50. EUR hit 1.2880 target, but intraday momentum is seen fading at 1.2930s. Bernankes testimony to the House of Reps will be the same as yesterdays speech but the Q&A could shed further light on Bernankes outlook. US 2-yr yields hit fresh record lo of 0.55, which remains negative for USDCHF.