Archived IMT (2010.09.06)

MORE USDCAD DOWNSIDE (SEE CHART http://chart.ly/d3xo7bs )

as the loonie cheers the rise in risk appetite, especially when it is propped by improved US dynamics such as the US jobs report. CAD also gaining ahead of Wednesdays BoC interest rate decision, which is expected to produce 25-bp rate hike to 1.00%. Ive repeatedly mentioned the 1.0660 resistance, which has no reason to break as long as equities remain supported at key levels of 1040 in SP500. There is a small risk that the BoC may NOT raise rates on, therefore it is best for USDCAD shorts to scale down ahead of Wednesday. GBPJPY has little reason to rally beyond 130, with downside calling 128. Public Holiday in the US means data plummeting FX liquidity after 15:30 GMT. Ashraf to speak on CNBC-Europe at 11:05 GMT