Archived IMT (2008.10.16)

FX is still all about risk. VIX surges to new record of 77 as stocks sink back to negative territory. Despite the plunge of October Philadelphia Fed index to 18-year lows, I told CMC clients earlier this morning I expect EURUSD to take its negative queues from a downturn in risk appetite, as traders test the $1.34 figure and set their sights on $1.3360. I expect EURUSD to test a fresh 1 1/2 year low under $1.32 and onto $1.3170 before month end.