Archived IMT (2010.04.19)

GREEk-GERMAN 10 yr BOND YIELD SPREADS shoot up to fresh record high of 462 bps EURUSD shed another half a cent to $1.3425. Volcanic ash is not only disrupting German air-space until Tuesday morning, but also delaying the arrival of the EU/IMF officials to Athens to discuss a 3-year policy program for Greece. The economic consequences of further blockage in European air traffic will be an added factor against the euro. Sterling dragged down by LDPs lead in all of the major opinion polls (not only debate polls), which increase the risk of a hung parliament. GBPUSD next target at $1.5135, while EURUSD risks calling up $1.3350 later this week.