Archived IMT (2009.04.21)

Sterling breaks below $1.45 to $1.4470 session low ahead of UK CPI data (8.30 am GMT--9.30 am London time) expected to drop back below 3.0% y/y after 3.2% in Feb. $1.44 is the 50-day MA, followed by $1.4360 (50% retracement). CAD deepens losses across the board ahead of todays interest rate decision (exp unchanged at 0.50%). But the real news from the Bank of Canada will be Thursdays monetary policy report, which will shed more evidence on the central banks intentions to move into credit easing. The 78.70 target of CADJPY HotChart was hit as the pair bottomed at 78.69 in Asia. Renewed risk aversion seen ahead today.