Archived IMT (2009.09.18)

GBP sustains more damage for the first time in the same week after Lloyds said is considering ways to exit the govts Asset protection program. 8-10 months ago, markets have witnessed periodic bouts of selling in sterling at each news release that the UK govt would extend its hand to UK banks. GBPUSD falls a full cent below our $1.64 target, while EURGBP regains the 90 pence level for the first time in 5 months, eyeing the next key resistance at 0.9090 50% retracement of the decline from the 0.9790 record high to the 0.8387 low. USDCAD regains 1.07 after having held above the 1.059 support (61.8% retracement), now eyeing the TL resistance at 1.08.