IIFT Daily Note with Peter Brown

Sell off continuing

Posted by:  |  Time: 7:34 am  |  Topic:
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As I write we are seeing a new low for the Euro 1.3920. The problem the authorities have got here is their lost credibility. Nobody believes them anymore. Unless they produce a credible plan to restructure Euro debt, these markets are only going one way. Price action so far has been steady, no panic selling, if we keep sliding eventually it will turn into a route, with everyone trying to get out at once. Euro has the potential to go below 1.30 in a very short time frame. It’s risk off everywhere and it is unlikely we will see a solution in the short term. Expect the Finance ministers to try to talk the market up this morning. We have come a long way overnight so might be a foot on the ball moment.

However without a plan we will head lower, buying this market is not a sensible trade!

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