Archived IMT (2009.08.20)

Stronger than expected UK retail sales failed to preserve the knee jerk rally in sterling, which jumped as high as $1.6606 before pulling back to new session lows at $1.6524. UK sales +0.4% vs. exp +0.2% m/m but weaker than the previous +1.3%. Cables failure to close above $1.6560 and euros failure to close above $1.4250 in Wednesday NY confirms these currencys unsustainable advances against USD and JPY. Meanwhile, USDJPY continues to struggle around 94.50s and gradually finds its way towards down. US crude seen retreating below $72 towards $71.20s. US jobless claims and Philly Fed survey will be key. $1.6430 in cable and 1.1040-50 in USDCAD seen next.