IIFT Daily Note with Peter Brown

Back to the fiscal cliff

Posted by:  |  Time: 7:43 am  |  Topic:
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Greece is off the agenda and now the only game in town is the fiscal cliff. This is going to be a roller coaster ride, probably. Remember we were down at 1340 on the S&P 10 days ago. This will not be easy to trade as we will be relying on rumour. I expect it to run good to bad all the way to 31st. ‘We have a deal’,  ‘there is no deal’  will dominate.

We need to go with the price action as the market could trade within a large range. 1420  1.340 possibly.

It will be risk on   risk off. Yesterday we were risk off and that may continue today. Levels are 1405  1385

Euro is slightly weaker falling off the 1.3000 level.  1.2860 should be support but it will likely move with the S&P.

USD JPY is still correcting, a would like a sell off to 81.50 before considering a strategic trade. The only concern I have on this trade is the effect on the dollar during the fiscal cliff talks.

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