Archived IMT (2008.09.25)

USD reverses earlier declines and rallies across the board along with surging stocks despite 11.5% plunge in August new home sales (biggest drop since November). Wire services attributing improvement to increased chances that $700 bln package be passed before week's end. GBP slumps past our $1.8450 target, targetting $1.84, EURUSD tests $1.4600 support, eyeing 1.4580s. USDJPY also in line with our morinng forecast, breaching the 106.30s, now eyeing 106.60s.