IIFT Daily Note with Peter Brown

Dollar not wanted.

Posted by:  |  Time: 7:36 am  |  Topic:
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Bond rates in the US are low, very low and nobody thinks they are going higher. Expectations for growth are falling and most now believe the outcome this year will be between 2/2.5%. Well below the 3%+ the market was getting excited about. The expectation that the US economy is slow is impacting on interest rates and the dollar. USD/JPY below 101.50 Euro above 1.3700.

Despite growing belief that Draghi will act in June the Euro is holding up because the dollar is weak. Expectations including mine that the Euro would be 1.3450 in June and fading unless we see some dollar strength soon.

Equities are range bound, good gap close yesterday. No big story to drive a macro view.

Conditions Choppy.  Levels are:-  S&P (JUN) 1887  1877  Wall St (DFB) 16560  16480 DAX (DFB) 9680  9620 Euro 1.3730  1.3680 Gold 1305  1287  1277

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