Archived IMT (2010.11.16)

UK OCT CPI RISES to 3.2% from 3.1%, which should further weigh on EURGBP and add gains to GBPAUD. GBPUSD gains by more than half a cent to $1.6080. The data help to delay any expectations of QE2 from the BoE, but more importantly, bolster GBPs existing robustness against EUR, AUD and CHF. My bearish stance EURGBP eyes medium term declines towards 0.8280, followed by 0.81. Only a close above 0.8870 merits re-consideration of this important downcycle. 1,64 in GBPAUD is a consideration as the Aussie is pressured on a combination of global risk aversion and dovish RBA minutes. The central bank said the move was pre-emptive and prudent, rather than aiming at rising inflation, which led to interpretation that the rates may have peaked out for at least the next 2 months. EURUSD TRADERS TO WATCH Nov ZEW survey (due at 10 GMT); Sentiment index expected at -7.7 from -7.2; Current Conditions seen at 75 from 72.6. Any softening in this report should further punish EURGBP and EURCAD.(1.36)