Global Financial Market will be looking towards two major European events, ECB decision on rates and Greece Bond Swap (PSI) window that closes around GMT 20:00.
Any cut would be surprise, as there is no such urgency for a slash, but recent softer economic numbers coming from Europe has provided small space to the ECB decision makers that can combine LTRO Euro 1 Trillion with a cut to give boost to the market for stimulation of European economy.
I consider Greece Bond Swap (PSI) as a done deal because Europe cannot afford another adventurism at a time when the policy makers against all odds have already injected Euro 1 Trillion.
In another new development article published in WSJ hinting FED considering new type of bond buying program means FED money printing machine will soon start working. Watch out Gold and commodity traders, as short is no more recommended. If short, squaring of position is suggested before you are caught wrong footed and get trapped. Start bottom hunting to catch the big coming move.
GOLD $ 1685 = Gold may have seen the bottom, it has strong support around $ 1676-78 zones should hold for a break of $ 1689 that will push the metal towards $ 1696, as I am looking for a break of this level for a test of $ 1712 next week. Or else $ 1665
EURO @ 1.3143 = Euro should make gains today, preferred buying levels around 1.3120-30 for a test of 1.3184, break of 1.3190 would confirm Euro heading for 1.3235 or 1.3280. Possibility of volatile moves cannot be ruled out. Dip can extend up to 1.3096. However, break of 1.3065 would suggest a test of 1.2950
GBP @ 1.5732 = Buying Cable is preferred around 1.5720-25, a break of 1.5770 will push the British currency towards 1.5795 where is could met same resistance but clear break would encourage to enter 1.5840-45 zones. The level to watch is 1.5670.
March 7 - CHoPPy DaY AheaD - March 07