IIFT Daily Note with Peter Brown

Dollar Strength abounds

Posted by:  |  Time: 7:34 am  |  Topic:
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Good jobs figures and a surge in the dollar have dominated overnight trading. USD/JPY finally put to bed the 100 resistance level. The economic releases in the US of late will bring back discussions on ending QE. This should cause the stock market to pause and put some serious strength back into the USD.

Trading should be interesting today, expect some profit taking in Euro and USD/JPY but the medium trend is clear. 105  then 110 for the pair. Moves as always will be fitfull and pullbacks will be large.  100 should be solid support so buy on dips

Euro 1.3000  1.2980 are major support 1.3100 is a sell level.  S&P 1630  1620 S&P may find it difficult to find new highs against this backdrop. Be careful on that one today. If it starts to sell off in US time the correction may be substantial. I don’t think the trend it over but being a Friday we may see a profit take.

 

 

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