Archived IMT (2009.06.05)

FX markets lean towards risk-reduction trades as S&P500 struggles to hold in positive territory (although Dow outperforming a bit). USDCAD tests 1.1170 high, Cable dragged down below 1.60, while both AUDUSD and NZDUSD nearing session lows. Look for NZDUSD to retest 0.6220 low of earlier in the week. JPY also gradually firming up as S&P underperforms the Dow. The latter seeks to make the second daily close above the 200-day MA and to close positive on the year. AUD outperforming NZD, suggesting more downside for NZD against JPY and USD. EURUSD probing the 1.3970 trend support of the 8-week channel.