Archived IMT (2009.07.31)

US Q2 GDP and Canada May GDP both due at 12:30 GMT. US GDP seen at -1.5% from -5.5% and Can GDP seen -0.3% from Aprils -0.2%. JPY weakness extending across the board after last nights release of the biggest decline in annual core CPI in history (-1.7%). Dow futures +41 pts, FTSE +5 pts (FTSE resistance at 4,680). USDJPY tests interim resistance at 95.80, but we must see a close above the key trend line resistance of 96.20-25 to invalidate the current downtrend. NZDUSD tests 0.6570s, a break of which could extend towards 0.6620. Month end trading strategies and removal of hedges by banks to magnify volatility. Follow trading updates on http://twitter.com/alaidi