Intraday Market Thoughts

Negative US Data Trifecta to Delay Fed's Normalisation

by Ashraf Laidi
May 19, 2011 18:43

A Negative Trifecta in US data (US housing starts, leading indicators & Philly Fed) is just what the Doctor ordered for continuing Fed easing post-QE2. No, this does not mean were heading into QE3 yet. Instead, it means the normalisation process could take up to 6-months. We made our case in todays Premium piece on why the Fed will maintain its easing and the several steps it would take for it to remove accommodation. We called for EURUSD longs w/ prelim targets at 14340 and stops at 1.4210, but this needs to hold above 1.43 for the currency to avoid its 6th straight daily close below its 55 dma. See our full trading calls w/ charsts analysis in todays Intermarket Insights http://ashraflaidi.com/products/sub01/

 
 

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