IIFT Daily Note with Peter Brown

Mixed signals

Posted by:  |  Time: 7:33 am  |  Topic:
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The Greek deal has thrown up a Credit event therefore triggering the 3 bln CDS outstanding. The effect on the banks who underwrote them is not known. Non Farm Payrolls showed that the US is on a different cycle to Europe, about 3 years ahead. QE3 is now firmly off the table and this had an negative effect initially on Friday. However we bounced back strongly.

Today is a wait and see before we trade. First up we are risk off. China defecit leading the charge. I want to see some price action before jumping in. 1.3080 is good support on the Euro. Gold is back at the pivotal 1709 level. And S&P is sidelined.

It could be a range trading day, might take a number of days to establish a trend.

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