Archived IMT (2008.10.01)

GBPUSD HEADING TO $1.7600. A few hours after we warned of sterling's technically bearish pattern yesterday, the currency lost more than 3 cents from $1.8100 to $1.7750. We expect the pair to sustain further damage in the next 24 hours, extending declines below $1.77 and onto $1.76. Although the Bank of England is expected to hold rates unchanged at 5.00%, the reaction is seen widely negative as markets are increasingly focused on the growth priority of central banks than inflation. GBP losses are even more justifed by an eventual resolution at the Senate. ADP Report on Private Payrolls showed smaller than expected loss of 8K in September vs expectations of -50K, which is also giving USD some momentum.