Morning Brief

Good Morning Traders....
Over the weekend we saw continued speculation over the Italian election, Pier Bersani whose coalition won the most votes in Italy's elections insisted he would form a government on his own without seeking an alliance with his main rivals. Overnight we saw poor data from China, has pointed the European futures market into negative territory before the opening bell this morning.
All eyes will be on Brussels this afternoon as European Finance ministers meet, so traders will be paying close attention to any information relating to the meeting itself. In terms of trading this morning we have seen significant technical levels breached during the course of last week and we have a few of the major currency pairs sitting in and around major technical levels. The EURUSD is hovering around the psychological 1.30 level, however we did see this level breached in Fridays trading session, so we could expect to trade below this level if the Euro- area consumer confidence figures are poor due out this morning.
Another currency pair that we here at Lowkey are keeping a close eye on is 'Cable' or GBPUSD, it has been trading down as low as the 1.50 mark and this level was breached for a short period on Friday but the pair managed to close above here on Friday which proved that there is significant support down at these levels, but I have a feeling that there could be some more downside in this pair, as outlook for the Uk looks bleak and we have the BOE monetary Policy Committee on Thursday and they will be coming under increased pressure to authorise additional money printing which as we know will be positive for stocks (FTSE) and negative for the GBP currency.
Across the water all focus will continue to be on President Obama and his cat and mouse game with the house representatives to bash out a deal. It doesn't look to positive I was confident that a deal would have been ironed out on Friday but there was no deal reached and we saw another 'Can Kicking' exercise. Traders will be keeping a close eye on the process and any deal will be positive for US equities.

Happy Trading
@LowkeyCapital