Archived IMT (2009.01.05)

Cable +300 pips, reaching my $1.47 target mentioned earlier (see previous Intraday Market Thought) despite today's broad USD rally. Today's GBP advances mark the building blocks of a possible $1.5050 reading before Thursday's Bank of England rate decision. Market chatter leaning towards a smaller rate cut of as little as 50 bps, but 75-bp cut, would also help extend GBP gains on the foundation that the BoE may be nearing the end of the easing.