Archived IMT (2009.08.19)

The largely energy-driven stocks rally in the aftermath of those explosive EIA inventory data is forcing currencies such as CAD and GBP to rally into their technical boundaries, such as 1.0940-45 support on USDCAD and $1.6570 resistance in GBPUSD. If cable failed to break above the $1.66 resistance yesterday following stronger than expected CPI, then its likely to do fail again at this same level on non-GBP specific news. Expect the market to retest 1.6480, followed by $1.6420.