Archived IMT (2009.12.14)

Abu Dhabi bailed out Dubai World, US Nov retail sales were nearly double expectations and the SP500 has yet to regain the 1,120 level. And as oil prices no longer responding to improved risk appetite, USD strength and GBP weakness remain the name of the game. The fact that Abu Dhabi waited until the last minute (before the 2-week grace period) to help DW meet its short-term sukuk bond suggests that the bare minimum is being done to avert a new crisis. Cable looks to retest $1.6180 on the slightest downturn in appetite and EURUSD risks retesting $1.4590 from the current $1.4650s. Still difficult for cable to hit new highs after the London close.