Archived IMT (2008.10.23)

Alerting traders of the ongoing change in risk appetite brought about by the late session rally in US stocks (Dow and S&P500), which is reversing the USD and JPY gains in favor of the AUD, NZD, GBP and CAD. And with Microsoft beating earnings by 1 cent, though not a considerable event, JPY and USD longs are warned that this reversal could accelerate in the Asian Friday session and into European trade. USDJPY seen testing 98.60, AUDJPY seen attaining 97, NZDJPY at 60, USDCAD could drop to as low as 1.22 and GBPUSD seen at $1.6420. But GBP bulls are also warned ahead of Friday's Q2 GDP release at 4.30 AM EST seen -0.5% q/q and 0.5% y/y.