Archived IMT (2009.08.03)

Broad increases in Chinese and European PMI surveys are boosting the global recovery story and the related dollar damage as the USDX breaks the 78 double- bottom, eyeing the 76 low from September. Sterling leads the list of rallying currencies against USD and JPY after UK manufacturing PMI regained the 50 mark for the first time since March, boosting speculation that the BoE may not continue its guilt purchases. Oils continued rally above 70 and the anticipated 1,000 mark in the S&P500 are damaging the Japanese currency across the board.