Archived IMT (2010.02.26)

GBP tumbles across the board, further breaking away from its previous positive correlations with equities as the likelihood of further quantitative easing from the Bank of England haunts the currency. Readers of this website will recall our Dec 18 article http://bit.ly/5Meew3 laying out the case for why Sterling to Regain Whipping Boy Status in 2010. GBPUSD looks for preliminary target at $1.5130 after the $1.53 retarcement had been shattered. Any rebound remains capped at $1.5270 and $1.5330. GBPJPY probes the 135.70 support (61.8% retracement of the rise from the 118.90 low to the 162.91 high. Subsequent target at 135.30, followed by 133.80. US prelim Q2 GDP expected to be revised to 5.6% from 5.7%. CANADA Q4 Current Acct exp C$ -8.7 bln from C$ -13.bln. USDCAD supported at 1.0540, a break of which to call up 1.0480. But upside remains intact, for renewed test of 1.0590 and 1.0630.