Archived IMT (2009.03.17)

The anticipatory nature of equity and currency markets suggests that prolonged gains in the euro remain, especially vs. USD and CAD. Although the Current Situation index of the ZEW survey continued to deteriorate, the forward-looking Sentiment index hit a fresh 15-month high. Considering the ongoing negative correlation between the US dollar and global equity indices, further advances in indices are likely to amass fresh gains in EURUSD into the $1.33 territory. A successful close above $1.3057 (100-day moving average) would be a positive sign for the aforementioned scenario.