IIFT Daily Note with Peter Brown

Cyprus dominates.

Posted by:  |  Time: 7:27 am  |  Topic:
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One story leading the market yesterday and today. How will Cyprus raise the money it needs to keep their economy going. Russian help? a u-turn from the ECB, or leave the Euro. All are realistic possibilities. This will keep a lid on the market for the week. Also today we have the UK budget and the FOMC meeting.

Look to sell Euro and the Dax on rallies, the S&P needs to be avoided at close as Mr Bernanke is likely to say something about QE. That could be positive or negative. There will be high volatility as he speaks.

Overall the mood should be Risk Off today although we may try a bounce first.

Levels are S&P 1552  1532 sorry wide but that is the best levels.

Euro 1.2960  1.2940 1.2860 1.2840

USD/JPY.  yen is being used by the market as a safe haven so be careful, may be good to stand aside here until a solution is found for Cyprus.

IBEX same as always, mood is important, as yet mood is not too bad so unlikely to be a trade here early.

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