IIFT Daily Note with Peter Brown

Markets better overnight

Posted by:  |  Time: 7:48 am  |  Topic:
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Slight rally on Bank Of China action. Market very solid on stocks but very quiet. Euro unable to hold gains and many think we are starting a down trend in the pair. Interesting thing about the Euro is it will probably slide slowly when that move starts. Euro is unlikely to be volatile ahead of the next Draghi press conference but it may loose ground ahead of that. 1.3500 is the first major support and any rally towards 1.3600 should be sold into. If Mr Draghi announces new measures to stimulate the Euro Zone economies the move lower will accelerate.

The stock markets are solid both US and Europe. Little in the way of bad news but up moves are subdued. We will be starting to focus on the next FOMC soon and the possibility of more tapering. Until then expect the market to be calm.

German economic sentiment the only news item of note today at 10.00am.

Market should be calm again

Levels are Euro 1.3574  1.3500  S&P (MAR) 1846  1834  Wall St (DFB) 16590  16470

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