Brenda Kelly – Head analyst at London Capital Group – joined Nick Batsford in the Tip TV studio to discuss the anticipated dollar weakening having positive implications for the currency market, as well as the recent rallies in the equity market.
NFP figure letting the dollar down?
Kelly believes that many investors built up a dollar position ahead of last week’s NFP release which failed to impress. She believes that these positions could begin to unwind, which could benefit Cable in particular, but has also seen a bounce in commodity prices.
Equity rally.
With Friday seeing the biggest intra-day reversal in 4 years for the S&P 500, Kelly believes the equity markets are seeing a bounce as investors search for cheap money. She also believes that the FTSE 100 could start to rise again if it can break and close above 6300 on a weekly basis.