Archived IMT (2010.05.26)

THOSE SPANISH BANKS AGAIN. Reports that Banco Bilbao Vizcaya Argentaria (BBVA), Spains 2nd biggest bank remains unable to renew $1bn of short-term funding in the US market so far this month. In other parts, The ongoing increase in LIBOR rates (now at 0.53% from 0.25% 3 months ago) partly reflects US banks reluctance to lend short-term money to Southern European banks. EURCHF breaks below 1.42, testing the 1.4140 support, coinciding woth the 76.4% retracement of the rally from the intervention jump to 1.46. Thus, 1.4080 stands as the subsequent target, especially as EURUSD tests 1.22. We mentioned in the last IMT next target emerges at $1.2130s