Archived IMT (2009.08.18)

Higher than expected inflation figures from the UK and a 17-point jump in German ZEW index are boosting all European FX against USD and JPY. UK July CPI at 1.8% from Junes 1.5% and higher than expected core CPI at 1.8% are lifting GBP across the board. But GBP remains the weakest traded currency after USD and JPY. GBPUSD is seen capped at $1.6530s, USDJPY faces resistance at 95.80s. US Jul housing starts/building permits expected to have registered a modest gain in July, which could be exert fresh weakness against USD and JPY, but sustaining these moves during the US session will remain the question for the day as we've seen several days of intra session highs in EURUSD and GBPUSD that failed to hold by end of trading.