Archived IMT (2009.08.04)

Despite the protracted push in risk appetite in early Tuesday Asian trade, oil prices have yet to attain and close above 72.60, which is the trend line resistance extending from the June 11th high. A breach above 72.60 would be the next shoe in the escalation of risk appetite and potentially prolonged damage in the USD. Better than expected US pending home sales are helping to keep US equity indices in neutral territory. Despite the protracted push in risk appetite in early Tuesday Asian trade, oil prices have yet to attain and close above 72.60, which is the trend line resistance extending from the June 11th high. A breach above 72.60 would be the next shoe in the escalation of risk appetite and potentially prolonged damage in the USD. Better than expected US pending home sales are helping to keep US equity indices in neutral territory. Consequently, USDCAD is little changed from 1.0650s, while CADJPY eyes 90 yen as the new target.