Archived IMT (2009.11.11)

A series of USD-damaging remarks emerged from various Fed officials today (Lockhart, Yellen, Rosengren) confirming (between the lines) that liquidity will not be reduced before year-end and no exit strategy will be adopted before end of Q1. But traders must be careful from the divergence between rapid USD pullbacks and relatively capped oil prices. While USDX has hot fresh 15-month lows, oil remains unable to break the interim resistance of 80.50. Could this mean that USD weakness is the now the only reason to the rally in stocks? These dynamics could be the reason why any USD rebound will be limited and whey JPY rebounds will continue to exceed those in USD during risk aversion. Watch lower highs in AUDJPY possibly retesting 82.50. GBPUSD awaiting unemployment at 9:30 GMT (exp +20K unemployed) and BoE inflation report (10:30 GMT).