Archived IMT (2010.06.02)

GBP or CAD? We noted yesterday CADJPY and GBPJPY were the likely aggressive gainers on a combination of Japanese political uncertainty, improved risk appetite and robust UK and CA data. GBPJPY breaks above May 10 trend line, now eyeing 135.90, while CADJPY could potentially extend gains towards 89.60s, which is the trend line resistance from the May 4 high. Thus, as long as Asian stocks continue gain from the NY rally, these yen crosses are set on their upmove. 10290 in the Dow and 1105 in S&P500 are the elusive 200-day MAs, which need to be broken this week for the bulls to maintain hopes of a real rally.