Archived IMT (2008.11.28)

The sharp decline in Eurozone preliminary Nov CPI to 2.1% y/y from 3.2% in October clears the way for a possible 75-bp rate cut to 2.50% at next weeks ECB meeting. EURUSD failing to regain its previous resistance of $1.2820, now eyeing interim support at $1.2680. Mixed reports of a resolution to the hostage crisis in India is gradually alleviating market sentiment, aiding USDJPY higher towards the 95.50s but the pair does remain consolidative within the 95.00-95.60 range.