Archived IMT (2010.02.04)

BoE announced no new QE but did leave the door open for new asset purchases down the road when it said "can make further purchases should the outlook warrant them". Although sterling rallied off its lows immediately after the revelation of no new QE, markets will likely offer limited upside near $1.5920s. Last night's IMT called $1.5820, which was hit earlier in Asia. A strong US NFP jobs report could open the door for $1.5770, especially if tomorrows UK PPI comes on the weak side. US jobless claims (exp 460K from 470K) and ECB press conference both due at 13:30 GMT should be in focus. It is very difficult to imagine anything positive for the euro released from the ECB. OIL FAILED yesterday at both its 55 and 100-day MAs of 77.70 and 77.30 and now looking for 75.30. 200-day MA rests at 74.10. http://bit.ly/d8j9C1