Despite the lack of decisive action one way or the other yesterday, I feel that the impetus remains with us bulls for now. The FTSE, EURGBP and EURUSD are holding up well enough after their decent run, and I would see this as water-treading in ahead of further gains.
The DAX’s weakness is one slight cause for concern, admittedly. It has been much the less impressive performer in 2013 to date, perhaps partly due to the soaring value of the single currency. However, I am more convinced that the strength of the FTSE and the Wall Street indices tells the real story here. I continue to seek longs in FTSE and the Euro, and shorts in GBPUSD.
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The next edition of European Market Outlook will appear on Monday 11 February.