Archived IMT (2010.12.02)

US 10 YEAR YIELDS TOUCH 3.00% for the 1st time since August, nearing the 200-day MA of 3.10% while USD approaches towards its own 200-day MA of 82 from the current 80.40. This especially negative for EURUSD as the spread between German and US 10-year yields (GE minus US) deteriorates to -0.18% after repetitively failing to regain positive territory since June 2009. The yield spread implications for EURUSD are such that $1.30 will likely come under assault before our medium term target of $1.27 emerges. EURO BULLS WILL NEED TO SEE A CLOSE above $1.3260-70 on Friday in order for the downtrend to be challenged into a concrete rebound. ASHRAF's VIDEO MARKET HIGHLIGHTS http://bit.ly/gkBKWS