Daily Coffee Market Outlook

NY- Neutral- Yesterday heralded a stronger Euro as positive news regarding Greeces rescue plans filtered through the market. However, unimpressive volume in the 'C' left May to settle slightly below unchanged. The tight range between 130 and 133.50 continues, and we see much of the same occurring today. The ECB and Bank of England rate announcements are out today, and this should provide the focus for the USD and commodity markets as a whole. Above 133.5, the next resistance remains at 137. To the downside, a break of 130 would open the doors for a challenge to wards 124.

Liffe- Sell (1)- LDN continues to flirt with the 1280 zone, and yesterday was no different. The market closed up small on the back of low volume as deliveries for March continue. LDN, like NY, is very much in a sideways pattern at the moment, with traders showing very little interest to buy or sell in volume. However, in the medium term, the trend points downward and as such we look for further losses today (albeit small ones). 1300 and 1335/40 remain the upside targets; to the downside, look to 1250 as support. We do not envisage any particular fireworks today unless the BOE or ECB spring some kind of surprise.