Archived IMT (2009.06.09)

Markets edge into into positive territory after the US Treasury allows 10 major US banks to repay the TARP funds, setting them free from added oversight regarding lending practices, hiring and bonuses. 10 major banks will be able to buy back govt-owned shares. As markets moved out of the red, dollar-selling intensified, especially as oil prices closed above $70 for the first time in 7 months. In the absence of any event risk (data, negative developments), Forex markets continue to sell the dollar as the path of least resistance.