Archived IMT (2008.09.26)

Dollar extends losses and S&P futures drop more than 1.5% as what was thought to be disagreement over the rescue package turned out to be a deeper source of dissent, giving way to a Republican-backed proposal that is already facing opposition. This means that equities are set to erode all of Thursdays gains tomorrow, which were largely based on hopes of resolution to the package. Having attained the 107 yen figure and failed, USDJPY may now be dragged by fresh risk aversion back towards the 105.20 support. CHF remains favored, targeting USDCHF at 1.08. The smaller than expected decline in NZ Q2 GDP is boosting NZDUSD back towards 0.7020s.