Archived IMT (2009.04.02)

The only possible explanation for the ECBs surprisingly smaller than expected 25-bp rate cut across its interest rate facilities is its intention to keep the door open for further conventional easing and starting non conventional easing as early as the next meeting. But as long as stocks are applauding the funding of the IMF, path of least resistance remains dollar selling (even against JPY as USDJPY fails to break above 100). 72 cents remains a target for Aussie. If EURGBP closes above 0.9155-60 it coudl suggest a more definitive bottom and a subsequent rebound.