Archived IMT (2009.05.13)

BoE's inflation report knocks off GBP across the board by confirming negativegrowth into rest of year and sub 1.5% inflation till Q1 '09. Yesterday we pointed out GBP was only major currency to not have regained above 200-day MA vs the dollar. Support seen stabilzing at $1.5070. But the play remains in favor of JPY on the dips, reiterating our calls against NZDJPY and EURJPY. GBPJPY vulnerable to 140 in event of renewed equity pullbacks. US April retail sales due at 12:30 GMT.