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Despite some lacklustre economic data over the last 2 weeks, equity markets are once again probing the upside. US non-farm payrolls tomorrow need to be overcome, but as they will be affected by weather related issues, even a dire number may be explained away. A positive weekly close may be enough to break the recent trading ranges and set up a fresh leg higher.
Greece continues to rumble on, and may yet provide a surprise, but the likelihood is a bailout in some shape.
Sterling came to the fore this week as a "perfect storm" of a hung parliament, worries over the national deficit, and prospective sales to fund Prudential's takeover of AIG in Asia, led to large selling.
Euro/Sterling traded to a high of .9150 before it settled between .9000 and .9100. These worries look overdone and a strategic medium Sterling purchase could prove profitable.
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