Archived IMT (2009.11.02)

Two days after markets had their premature reaction to a higher than expected Q3 GDP growth in the US, CIT, the nations key lender to small businesses has finally gone bankrupt. A flurry of interest rate announcements (RBA, Fed, ECB and BoE) will highlight Australias recovery, US dichotomy between improved financial markets and the real economy; the need for the BoE to expand its QE by another 50 bln. It will be a long way before Fridays release of the October US jobs report is out. Looking for EURCHF to gain towards 1.5150s from current 1.5096, while EURJPY and CADJPY to remain capped at 133.20s and 83.70 for renewed losses towards 131 and 82.10.