Archived IMT (2009.02.11)

Sterling's losses inensify across the board after the Bank of England Governor King reiterated that the UK is in deep recession and the BoEs inflation report projected inflation at only 0.5% in its 2-yr forecast period. GBP unable to share in the euros gains after the BoE inflation report further exacerbated sterlings overnight fall, we expect prolonged losses to taper off at $1.4240. EURGBP faces additional upside after breaching above 90 pence. 90.80 stands as the incoming resistance, followed by 91.30 pence.