IIFT Daily Note with Peter Brown

Euro starting to bubble

Posted by:  |  Time: 8:06 am  |  Topic:
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We are getting closer to the ECB press conference on Thursday and already there is great speculation on what Mr Draghi is going to deliver. It would seem he is going to produce some form of bond buying programme but the devil will be in the detail.

He needs the co-operation of the Spanish and the Italians to request aid formally. This is unlikely in the short term. He then needs the ESM to be ratified on the 12th of September by the German constitutional court. He also needs to produce targets on where he is going to drive short term yields to and how large his war chest is.

So despite the favourable comments emerging there is still a long way to go.

Really we will have to wait for the speech to get the clear picture.

In the meantime Euro looks strong. We have broken through 1.2600 so the new range should be 1.2680  1.2560

S&P should rally after yesterday,s holiday 1412  1404  is the range there.

Gold is resting after the move to 1700 need a pullback before entering there next target 1800

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