Archived IMT (2009.12.15)

As the USD builds further strength, Wednesday's FOMC statement is deemed as the only major negative for the US currency in the event it reiterates the usual indication of: low interest rates for a considerable period; low resource utilization; and benign inflation. Any sign of an upgrade in the Fed's view or FRB's growth forecasts, credit markets would favour the USD's yield differential on the interpretation that the Fed intends to withdraw liquidity earlier than foreseen. USDX 55-day MA now becoming a key support after having served as a resistance over the last 8 months.