IIFT Daily Note with Peter Brown

Dollar stabilized, Euro should fall further.

Posted by:  |  Time: 7:33 am  |  Topic:  |  Comments: 2
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Now that USD/JPY  has found a floor it opens the way for further falls in the Euro. We should test 1.3600 support soon and then head lower in Draghi in June. I still maintain my target of 1.3450 as the level before he speaks. Any bounces are a sell.

Stocks are bid and we may attempt 1901902 again in the S&P cash. No bad news on the horizon and while the market is neutral stocks will rise. the correction boys are not getting their way. It seems nobody is concerned at these levels and few want to cash in as there is no return in other asset classes.

Secret on the indices is to trade the mood.

Not much in the way of news today, should be a quiet morning.

Conditions calm/choppy.

Levels are :-  S&P (JUN) 1898  1884 Wall St (DFB) 16600  16500  Dax (DFB) 9775 9680 Euro 1.3680 1.3600 Gold 1300  1290

2 Comments

Terry Pierce

May 23, 2014

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I am surprised a the constant bid in the US equity markets but i think you hit the nail on the head, there are no other alternative assets classes that are generating any gains.

I am keeping an eye on the DAX and the 9800 level, think a combination of rate cut next month and a weaker euro could drive it higher if it can break through the psychological 9800 previous high.

Peter Brown

May 23, 2014

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Hi Terry,
Agreed, all this talk of a correction to markets. cannot see where it will come from myself.
If Draghi does not disappoint DAX will get a serious boost.
Important to wait to hear what he says.
Funny feeling he will do the minimum. Market will not be happy.

Peter