IIFT Daily Note with Peter Brown

Wow, Europe is in some trouble!

Posted by:  |  Time: 7:44 am  |  Topic:  |  Comments: 2
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Firstly apologies for no blog yesterday. I have saved you some money there because it would have been written before the release of GDP figures. They were awful.

It is quiet clear economic policy in Europe is just plain wrong and the contrast between the Eurozone and the US is now stark. At some stage this year the ECB are going to have to eat humble pie and do a u-turn.

In the meantime another day of Europe selling and an American bounce. This S&P is amazing, 110 point rally from 11.30 am. Slight sell off at close though.

Today the range is wide  1512  1520 but this is where the value is. I would expect a negative European session and then we have to see if the Americans are still in buying mood. It is friday so be careful this afternoon, we may get some profit taking.

On the Euro 1.3300 is really good support. My view of the Euro has not changed and should rise, but if 1.3300 goes I will change my mind. 1.3400 is resistance. Watch for the mood this morning and be carefull of the 11.30 reversal.

2 Comments

Ross

February 15, 2013

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What in the world is happening with Gold and Silver. We have been trading in this sideways market for over a year. Europe GDP seems to have zero affect? What about safe haven buying?

    Elva Burns

    February 15, 2013

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    Hi Ross,

    Know what you mean. however after Draghi’s bond buying back stop last August , nobody perceives a great risk to the Euro.
    So both metals have lost their safe haven status.
    Could go much lower initially I feel.

    Peter