IIFT Daily Note with Peter Brown

Euro runs out of steam

Posted by:  |  Time: 7:38 am  |  Topic:  |  Comments: 2
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Draghi’s comments that he may introduce negative interest rates for funds deposited with the ECB clobbered the Euro. The thinking behind this move is to encourage banks to lend. Euro was due a correction anyhow and being Christmas markets the move was extreme.

Euro is now a sell on rallies 1.3175 now a major top. 1.2970 is resistance 1.2880 support.

S&P rallied on outlook for QE. This market is getting seriously volatile  1396  1421 is the wide range. We expect a decent sell off at some stage when it becomes clear no deal will be reached on the fiscal cliff before year end.

Volatility will dominate these markets up untill the year end. Watch Apple for sentiment. And expect big moves.

 

2 Comments

Jerry Spillane

December 7, 2012

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are you using a random number generator for these prices ?

    Peter Brown

    December 7, 2012

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    Hi Jerry,

    No Technical Analysis and previous support and resistance levels. For shorter time frame levels use Forexlive.com they give the intra- day points. I like to use the outside levels in December because I know the volatility is increased.