IIFT Daily Note with Peter Brown

Risk off day

Posted by:  |  Time: 8:17 am  |  Topic:
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Following on from Fridays rally we have a risk off day to start this morning. It is a bank holiday in the UK so markets should be quiet.

The game now is to find the top of this US equity rally. 1205 is a good resistance level. Whether we can get there before we run into bad news is debatable.Eventually we will start down again, it is only a matter of time as Bernanke did not offer any concrete solutions. Gold is forming a good base and looks set to resume it’s rally in the next few days.In the abscence of bad news these equity markets will rally but remember nothing is fixed yet in Europe or the US. On FX the chf is now untradeable. Eur/usd looks like it wants to break out of it’s recent range but I would not be surprised if it fell back into the 1.4350 1.4500 area.

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