Archived IMT (2009.12.16)

ECB's final 12-month tender (loan offer to Eurozone banks) due at 10:00 GMT, expected to draw bids of 75 bln, lower than the prior 2 tenders. An amount well above 80 bln, (such as over 70bln) would be EUR-negative as it produces more supply of funds. The latest resurgence of sovereign credit woes in the Eurozone and the forced rescue of Austrias 6th largest bank may force banks to bid up their demand for emergence funding at the tender. EURUSD remains capped at $1.4590, with ongoing risk of retesting 1.4520, followed by 1.4470. EURGBP capped at 0.8980 while sustaining risk of renewed decline towards 0.8900.