Archived IMT (2009.12.22)

US Q3 GDP revised down to 2.2% from 2.8% (initial estimate was at 3.5%) partly due to slower inventory accumulation, while the UK remains in recession after Q3 GDP was revised to -0.2% (vs. the expected -0.1%). Overnight, GBPUSD broke below its 200-day MA of $1.6 as the resistance continues to decline, formerly at $1.6270, now at $1.6090. More recent data will be Wednesdays release of US November personal spending (exp 1.6% from 0.2%), which has the potential of intensifying the dollar rally especially as liquidity thins out further. Cable lowers downside target to 1.5930. USDJPY target of 92.25 and 92.60 still intact.