Archived IMT (2009.08.06)

Oil prices may not be cooperating with the risk aversion trade in FX and equities, but USDCAD and USDJPY have both complied with our stated 1.0780 target and 95.80 resistance. The USDCAD chart in todays article eyes the 1.0910 target, as Canadian currency jawboning and bearish divergence in equities are doing their job in weighing on CAD, more than offsetting any effect from rising oil prices. JPY strength has been gradually emerging as per the tweetpic in the last IMT. USDJPY is on its way towards the 94.60. Playing sterling weakness on any eenring risk aversion wave is resulting from today's BoE decision to expand QE by $50 bln.