Archived IMT (2010.08.25)

More disappointing US housing figures are unlikely to further boost USD on risk aversion because (i) prolonged US data deterioration bolsters the case for a fresh asset pruchases from the Fed; and (ii) of the latest upside surprise in German August IFO survey. While the latest 3-year high in German IFO does not rid the euro of fresh downside pressure, it reduces the case for aggressive euro selling on the heels of poor US figures. As result, CHF and JPY continue to claw gains on the perceived ineffectiveness of any intervention from the Swiss National Bank and Bank of Japan in stemming strength in their currencies. GOLD eyeing 1240s resistance, which would pace the way for key upside target of 1270. US stocks attempt to shrug the unexpected 12% decline in Jul new home sales, weighing on JPYacross the board. CADJPY seen capped at 79.90, AUDJPy downtrend intact, with rebounds capped at 74.85-90 before renewed losses. Ashraf is currently on travel & updateds will be less frequent than usual.