Archived IMT (2009.09.28)

Nothing in the multi-paragraphed G20 statement stops traders from continuing to sell GBP and buying JPY in early Asian trade as the deteriorating technicals of risk appetite measures (equity indices, yen crosses and oil) move further towards risk aversion. The speed of yen buying has intensified to the extent of breaching GBPJPY below 140 and USDJPY towards 88.20s. The victory of the centre to right coalition in German elections gave a short term boost to EUR that was only taken advantage of by the risk aversion trade to sell the currency on strength against USD and JPY, targeting 1.4590 and 129. 40 respectively. Watch for oil retesting 66 and GBPUSD eying 1.5720.