IIFT Daily Note with Peter Brown

Unusual move from Draghi, lowers Euro

Posted by:  |  Time: 7:27 am  |  Topic:
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Well a big surprise and somewhat confusing. Euro hit 1.4000 after Draghi announced no stimulus at yesterday’s meeting. Then he threw a spanner in the works by saying a move in June was imminent. That crashed the Euro and we are 1.3840 this morning. From here the question is do we believe him or is he just trying to talk it down. Today the price action should be interesting. 1.3800 is good support and if that holds we may drift higher. It is a tricky one and he has left the market in limbo.

Stocks put in a good day and once we avoid headlines from the Ukraine the market rallies. However I think this rally is starting to look tired and the sell off at close gave us the indication that there may not be a lot more on the upside. Plenty of action and today should be choppy. The indices are a sell on these rallies. But do not get carried away as we have said we keep coming back to the same levels time and time again. Need another day to get the Euro trend, unlikely it is heading a lot lower on just a promise!

Levels are  S&P (JUN) 1884 1867  Wall St (DFB) 16620  16500 DAX (DFB) 9625  9500 Euro 1.3890  1.3785 Gold 1300  1280

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