Archived IMT (2009.01.29)

More grim US data confirms the direct correlation between equities and GBP, EUR, AUD and NZD as these currencies erode previous gains vs USD and JPY. In line with the mornings charts, GBPUSD failed to breach above the TL resistance of $1.4410-15 and could be set to retest the $1.4070 low (38% retracement of the $1.3560-$1.4380 rally, before extending towards $1.3930. USDJPY closed above 90 yesterday for the first time in 2 weeks, could be unable to follow through today if equities furtehr pare recent gains. As 90.70-75 proves a challenging obstacle, focus is set on 88.70 ahead of tomorrow's potentially hurrendous Q4 GDP.