Archived IMT (2008.12.18)

Euro's increased ability to act as the anti-dollar is in part boosting its rally across the board, including its 4-week highs against the strengthening yen. And with sterling fundamentals remain strained by deteriorating twin deficits and falling interest rates (lower than Eurozones), the road to EURGBP parity is bound to meet our long established forecast. Technically, EURGBPs overshoot is defying conventional measures. Daily RSI reached record highs and 9-month highs on the weekly chart. 97 pence seen as the next target before a deepening retreat extends towards 91 pence. Renewed gains seen in Q1.