Archived IMT (2009.09.15)

KING SLAMS POUND. Sterling is sold off across the board after BoE King says may reduce the interest rate on bank reserves. Markets are uninspired by the +0.2% in the Nikkei & Shanghai as well as the smaller than expected improvement in German ZEW survey. Both EURUSD and GBPUSD drifting towards session lows, but EURGBP is outperforming strongly after Kings comments, looking to break out of 0.8850 resistance and into next target at 0.8920. USDCAD bounces back to session highs looking for 1.0880s despite modest pullback in oil. $GBPUSD eyes 1.6470, followed by 1.6400.