Archived IMT (2009.11.10)

EURGBP drops off its 0.9016 session high after German Nov ZEW survey fell by more than expected, hitting a 4-month low of 51.1 from 56. Broad GBP weakness resulted from Fitch said UK was only major economy at risk of losing its AAA credit rating. Expect EURGBP rebound towards 0.8990, while GBPUSD capped at $1.6760. But rather than playing GBP (or any other currency) against USD, theres more downside room against JPY. GBPJPY and CADJPY eye downside at 150.50 and 85.50. S&P500 attempts hitting high for the year as did the Dow but the key resistance level stands at 1,090 100-week MA, which is just below the 101 high for the year.