Archived IMT (2008.10.27)

Reserve Bank of Australia is first central bank in G10 to make overt forex intervention to support its currency but impact proves only temporary as Aussie drops back near 5-yr lows of 60.5 cents. G7's success in talking down the yen also proved short-lived as the currency gradually rebounds off Asian session lows. Tuesday's FOMC decision may deliver a 75-bp rate cut, which is likely to trigger a short-term boost to markets, while Thursday's advanced US Q3 GDP figure will provide passing interest on how bad the estimated figure will be. Expectations are for a 0.3% annualized decline following 0.7% increase in Q2. The barrage of US Q3 corporate earnings and guidance from CEOs will also set the direction. With markets having become desensitized by the multitude of actions (concerted rate cuts, Treasury purchases), effectiveness of fresh Fed cuts and cenbank Forex interventions remains doubtful. TUNE IN TO UPDATED CHARTS ON SPECULATIVE FUTURES POSITIONS.