Archived IMT (2008.10.13)

GBPUSD rallies nearly 5 cents to $1.7440 in line with surging risk appetite, facing key resistance at $1.7530 as long as US equities maintain their bullish tone for the day. Although the pair may not accumulate gains towards $1.7730 today, traders could target the $1.7650s, especially as Japanese markets are expected to open sharply higher on Tuesday following Mondays holiday. EURUSD is also considered as high yielding pair relative to the USD, soared to as high as $1.3680 before retreating to $1.35. Failure of global equities to follow up once markets are fully operational on Tuesday could drag the pair back towards $1.34.