Archived IMT (2010.08.20)

CANADA JUL CPI is the only data item of the day, further inflation softening could add to CAD selling especially in the event of prolonged declines in appetite. Watch the annual core CPI (exp at 1.8% from 1.7%). USDCAD 3-hr shows immediate TL resistance at 1.0420, a break of which seen extending to 1.0470s. CADJPY eyeing 81.50s, but traders are reluctant to add on to selling after Japan Fin Min said he;s in talks w/ other G7 nations regarding FX. GBPUSD nears further towards the 200-day MA (1.4490s) confirming a deterioration in technicals. Bounces continue to be sold and $1.5445-50 stands as next key foundation. EURUSD approaching the all-important 1.2740 trend line support from the June low, with a WEEKLY CLOSE below 1.2740s could spell fresh losses towards 1.2550s. EURCHF has now declined by more than 400 pts from last last weeks alert of the 1.36 trendline, so careful about one of those typical Friday SNB interventions. Aussie on the defensive ahead of Saturdays closely contested elections.