As Economy started
showing encroachment of sequester Fed is up with same easing policy but
everyone is wondering if economy goes on back foot what else Fed can do?? Though
in yesterday's statement
they said to prepared to “increase or reduce the pace of its purchases,” but big question is how long and how big they will keep easing ??
After Fed is now ECB’s
turn and today it very vital for markets particularly European as there
Is immense pressure
on ECB and everyone is expecting ECB to cut interest to push growth and don’t
let EU in huge depression and if that doesn't happen today European and American
markets are going to react very negative
Yesterday commodities
snap down as Chinese PMI came lower than expected moreover US economic data was
also worse than expected but astonishingly toll always taken on commodities more
than stock but after long time stock responded to economic data. Although I am
expecting Chinese to cut interest in near future to help economy.
Wednesday’s call on
buying gold was regretful though there was looming risk of Fed announcement
which generally keep market very volatile however but other call for sell
Eur/Usd and Usd/Jpy both were positive and expected to achieve target today.
Following are trade
calls for today,
- Sell Aud/Jpy around 99.70 stop above 100.30 target around 98.30/40
- Sell S&P 500 around 1587 stop above 1600 target around 1577/70
For more info visit :www.cfb.ae
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