Archived IMT (2010.04.23)

GREEK AID TALK FUELS EURO: Greek PM confirms that Greece WILL ask for EU/IMF aid. More volatility to come in the next 2-3 hours as markets set for a POSSIBLE BUY THE RUMOUR-SELL THE NEWS. EURUSD rallied 1.5 cent to $1.3346 on the news, but is failing to act as PM Papandreou begins his live statement. SIZE MATTERS: All we know now is size of aid is at EUR 45 bln ( EUR15 bln IMF and EUR30 bln from EU) so watch out for any surprisingly big amounts (announcement effects have been key), such as the EUR50 or EUR70 bln as has been indicated last week before these were dismissed as rumours. - $1.34 will be the level to break, but the next key barrier stands at $1.3550, which is the top of the 4-week channel. - EURGBP rallies off the key support (mentioned in yesterday's analysis 100-week MA); especially after disappointing UK GDP. 0.8750 stands as next substantial ceiling.