IIFT Daily Note with Peter Brown

Inflation data up this morning.

Posted by:  |  Time: 7:41 am  |  Topic:
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Euro zone inflation up at 10.00 am. 1.2% expected. If this figure comes in below expectations we could see a sell off in the Euro. 1.2840 is the key level and a close below there will bring 1.2750 (the Cyprus low) into play.

Elsewhere we saw the usual rally on the S&P. Reaching 1660 before a slight profit take.

Yesterday morning we saw bad growth figures in the Euro zone but the market mostly ignored them. We are in a strange market. Rallies with no correction and bad figures being ignored! We have to live with what the markets are doing and although it does not make a lot of sense to many, fighting the trend is useless.

Elsewhere Gold looks very soft and has broken 1400, there is little reason to buy gold when Equities are charging.

USD/JPY 102.50 may be a short term top and we may get a correction to 100.50 area.

S&P levels   1660  1644   Euro 1.2900  1.2890  1.2840 support.

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