IIFT Daily Note with Peter Brown

Bank of Japan makes the hattrick!

Posted by:  |  Time: 7:09 am  |  Topic:
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Easing by the BOJ last night now means there all at it. Bernanke, Draghi, and now the Bank of Japan. Due to the nature of the interventions it has to be positive for the Euro. I would like to see another sideways to lower day, for the Euro, to take all the overbought out of the market but it might just spike back up. Underlying conditions are mixed, QE on one side and slow growth on the other. The one beneficary of both is gold. I though we may have corrected to 1745 but 1755 was the bottom, we are heading towards 1800/1900 in the medium term but it will be choppy.

On the Euro 1.3030 is great support and 102.50 on Eur jpy any buy in and around there should be good value.

S&P bottomed at 1456 yesterday  1475 is the top end of the range. Wait and see the mood before trading!

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