Archived IMT (2009.02.13)

JPY weakness emerges spreads on news of subsidizing troubled US homeowners, a rescued stimulus package in Australia, and rumours of Chinese rate cut. The resulting spurt in risk appetite boosts sterling strength partly by talk of possible demands from Eurozone ministers at the G7 meeting asking UK Chancellor Darling to stabilize GBP weakness, which has exacerbated weak German, French and Italian exports. But the BoEs diagnosis of a deep recession and the Eurozones biggest quarterly growth contraction on record, official communiqu on foreign exchange is unlikely to address any specific currency.