Archived IMT (2009.02.04)

US figures on January ADP payrolls and services ISM are likely to show slower deterioration, which may give an added boost to global equities and further drag down volatility measures. The CBOEs VIX closed lower at 43.06, is set to extend declines towards the 40 level but support seen cropping up just above the 200-day moving average (currently at 36.74), which has not been breached since September. Higher US 10 year yields and a lower EURUSD may be the order of the US session, with the risk of sub $1.28 seen ahead.