Archived IMT (2009.09.24)

Slower than expected rise in German September IFO survey was in line with the weaker than expected advance in the ZEW survey for the same month. The 6th consecutive increase in the IFO climate index reflects the expectations element of the survey, but apparent signs of a peak in the optimism could be capitalized upon by FX markets seeking to play the USD-bounce against European FX. EURGBP surges to fresh 5-month highs at 0.9134, eyeing the next target at 0.9170. Subsequent technical resistance stands at 0.926061.8% retracement of the decline from the 0.98 high to the 0.84 low.