Archived IMT (2009.02.24)

Markets await pres Obama's State of the Union Speech for any pointers on the banking rescue plan and the stress tests designed for banks. While it was no surprise that markets rallied ahead of the address, bear in mind that the latest trend has been for markets to sell-off after each and every speech by the new US president. FX markets shift risks towards a dollar-centric theme, which is continuing to boost EURUSD well above last weeks $1.25 lows, but resistance is expected to re-emerge at the $1.3090-00 barrier, especially as markets scrutinize the unfolding discord in within the European Central Bank.