Archived IMT (2010.09.22)

WHERE THE FED WENT, BOE FOLLOWED: Sterling is the 2nd weakest currency today behind the USD after the BoEs minutes revealed chances for FURTHER BOE EASING. Although Andrew Sentence remained the lone hawk, calling for a rate hike. Some members allowed for the possibility of more easing/ One member mentioned the risk of supply overcapacity and firms laying off more workers. BoE Chief Ecnomist Spenser Dale to speak today at 17:30 GMT (18:30 BST). MPC member Andrew Posen said last week BoE could engage in heavy duty credit easing if the need arose. GBPUSD once again proved unable to break $1.57, but more downside seen ahead in GBPJPY with preliminary support at 130.80. CAD loses ground after unexpected decline in Canadian retail sales, thereby supporting USDCAD at 1.0190, but 1.03 remains a resistance for now. DO WATCH OUT WHETHER today's USDCAD is a bullish hammer. I will assess this further and shed more light.