Archived IMT (2009.10.23)

Stocks shrug off stronger than expected US existing home sales, with the selling weighing most significantly on the battered GBP. As GBPUSD drops 370 pips, we near the 1.6310 target mentioned in previous IMT (when cable was at 1.64), EURGBP nearing the 0.9230 target. The Bovespa is deteriorating as warned in the HotChart, which could further weigh on risk assets and risk currencies (AUD, GBP, NZD) and help USD and JPY stabilize. As OIL TESTS 80, USDCAD eyes that 1.0580 target. Canadian readers watch ASHRAF ON BCC at 10:50 EDT (14:50 GMT) discussing GBP, Emerging Markets and CAD. USDJPYnever regained 92, while EURUSD could extend retreat towards 1.4970.