Archived IMT (2010.10.18)

USDX RESPECTS THE CLEARLY-TELEGRAPHED TRENDLINE SUPPORT OF 76, but any considerable rally BEYOND 80 is unlikely to materialize ahead before the Midterm elections/FOMC/G20 meeting. BOTH FUNDS & TECHS FORCES have conspired to stabilize USD selling, while EUR (Trichet/Weber), GBP (delaying spending cuts) and CAD (Dovish BoC tomorrow) each face their own fundamental reasons for backing off for now. The fundamental arguments behind the USD rally are widely attributed to Bernankes reluctance to give details on the size of Q2 due next month. This is owing to the Feds lack of visibility as well as lack of consensus regarding further stimulus. Please see previous IMTs and tweets on the possible US-China deal on FX discussed in length since Friday. I will be travelling until Friday, so for frequent updates and analysis, please follow me on http://twitter.com/alaidi