Archived IMT (2009.02.02)

SNOWED IN STERLING. Cable may have broken above the $1.44 resistance on Friday but Moodys downgrade of Barclays quickly sent the pair back towards the $1.4050 support. Expectations of a 1.00% interest rate in the UK coupled with further risk reduction appetite from the week's set of event risk is seen extending losses towards $1.3930. GBPJPY eyes a return to the 124 support as the week's array of event risk sources augurs poorly for the risk-senstive pair.