Archived IMT (2009.01.08)

The Bank of England went with consensus forecasts of a 50-bp rate cut to 1.50%, triggering broad gains in sterling as the decision marks a stark departure from the last two cuts of 100-bps and 150-bps. Sterling has already knived through our projected resistance of $1.5150, making yesterdays $1.5280 high a less challenging target, especially amid potentially negative US jobs data ahead (weekly claims and payrolls). GBP likely to demonstrate the usual pattern of tempering current gains going into the US opening bell before rebounding later in NY trading. $1.5350 appears a viable... Rest Available to Subscribers of Intraday Market Thoughts.