Archived IMT (2009.08.19)

With the Shanghai Composite Index down 3%, nearing the definition of bear market territory (almost -20% off its peak) and British Tory leader David Cameron reiterating those fears (warnings) about the loss of the Kingdoms AAA debt rating, Sterling joins the risk currencies in selling vs. USD and JPY. Cable never regained the $1.66 trend retracement show in our latest IMT, and is now eyeing interim support at $1.6380. NZD, CAD and AUD each lose ground, while EURUSD looks to retest 1.4040s as the London session opening salvo is set to produce a fresh wave of USD and JPY buying. USDCAD is up nearly a full cent from its 1.10 low, with retreating oil prices and falling equities weighing down on CAD. The 11 am GMT CPI data from Canada will also be scrutinized.