Archived IMT (2009.05.06)

Reports that stress tests will show Bank of America requiring as much as $34 bln in new capital are weighing on risk appetite and dragging down currencies against USD and JPY. Even the rallying Aussie failed to react to better than expected 2.2% increase in retail sales as the BoA story takes precedence over global risk appetite. EURJPY hit a 129.87 session in Asia, 17 pips short of the target in yesterdays Hot-Chart from the initial entry point of 132.70. Bearishness remains in most JPY pairs with USDJPY eyeing 97.40, NZDJPY eyeing 56.20.