Mr. Market has a lot of stimulus priced in. The Fed set the stage for additional QE unless the economy picks up significantly while Draghi has promised relief on the short-end of the yield curve for Spain and Italy (if they ask) while the ESFS has the long-end covered.
That’s the thinking, anyway. We’ll know this, and more, in about three weeks. In the interim, we get the ECB meeting, the the German court decision on the ESM and the FOMC meeting…
Near-term, 1.2480/90 should contain dips near-term; 1.2420/30 is further support. 1.2538 is first resistance followed by the 100-day average at 1.2623.
