Archived IMT (2008.10.02)

GBP, EUR and other FX hit session lows vs USD in early Asian Trade, while JPY trades in mid ranges. After early USD retreat in NY session, currency finds fresh bids, dragging GBPUSD and EURUSD to $1.7640, $1.3940. US Senators will begin voting on the Troubled Relief Asset Program at 10 pm EST (2 am GMT)-- a process that takes 15-20 mins. Bill may be passed but will it get the 60 votes to be approved? If passed, the rescue package will go to the House of Reps and be voted by end of week. NIKKEI-225 is up 0.6% or 71 pts. US jobless claims may be ugly tomorrow (+500K) but also watch out from BANK OF ENGLAND and EUROPEAN CENTRAL BANK interest rate decisions at 7am EST and 7.45 am. BoE decision may produce a surprise cut, but we expect decision to be GBP negative regardless. ECB conference at 8.30 am will be key as markets seek dovish talk, which could accelerate EUR losses towards $1.38.