Archived IMT (2010.10.14)

USD EXTENDS LOSSES with the help of further accumulation in Chinese FX reserves, robust US earnings and continued gains in global equities. Singapores decision to widen its FX trading band is a form of policy tightening aimed at containing rising inflation. USDSGD trades at 1.2950, nearly 9% down on the year, while GBPSGD trades at 2.0680, which is well above the May low of 1.9902, which means there could be more SGD upside against GBP than against USD. USDJPY flirts with 81 amid the deafening silence of the BoJ. I havent changed my take on 80.80 and 79.70 targets in USDJPY communicated on these IMTs 4 weeks ago. CAD already hit parity vs USD, while AUDUSD is 20 pips away. At this point, there is little in the way of support to USD even as these headline-grabbing levels are broken. GOLD HITS A NEW RECORD but keep an eye on OIL, which has more upside, targeting 84.70. Bernankes speak tomorrow about Monetary Policy in a Low Inflation Environment will hit the press 15 minutes before the release of the Sep CPI and retail sales figures. USD selling will likely at least continue until the market is finally knows the initial starting quantity that will head off QE2. SEK WATCHERS await speeches Riksbanks Deputy Governors Ekholm (14:00 GMT) and Nyberg (15:50 GMT), while EUR watchers await will digest some speeches from ECB members at the Aspen Institute. Im in Madrid for Seminars & Conferences so updates are less frrequent than usual. Please tune in to my quick/brief markety insights on TWITTER http://twitter.com/alaidi