Short recap
Japan/Hong Kong up, China/SoKo closed
Europe opening mixed
UK heading towards hard Brexit on settlement bill
dispute
Likely to be much larger than UK politicians think
But 2-yr transition period helps to remove pressure from
GBP
Higher USD causing USD funding issues
A China Conspiracy Theory: "What If Beijing Is
Behind The Entire Move?" SocGen Asks link
Equities
IBEX under pressure as Catalonia to declare
independence in coming days
Constitutional Court likely overrun the declaration what
will lead to escalation
People are in the streets and some companies stop working
Spanish king involved with “unacceptable disloyalty” as
well
A bit of caution is warranted as some US companies may
issue guidance revisions to the downside over the coming days
And analysts will adjust their earnings estimates
accordingly
The impact of Harvey and Irma is still being evaluated
Then, let’s turn positive for seasonal rally towards
Christmas unless something doesn’t happen
Few thoughts from Warren Buffett video
Likes Pilot Flying
Monsanto to report a loss on lower commodity
prices and lower income from farms
Troubles with new soybeans tolerant to herbicide also to
blame
Amazon to pay EUR 400 mln of back taxes to
Luxembourg
Bonds
10-yr Trys yield at 2.32% - plenty of next Fed
Chair speculations pushed yields lower.
Treasury Sec Mnuchin favors Powell
10-yr Bund yield at 0.46% - EZ yields lower while
UK and Spain higher
Bitcoin
BlackRock’s CEO Fink – Bitcoin shows how
much money laundering is being done in the world
Offers huge opportunities but presently is more
speculative in nature
China’s bitcoin market alive and well as traders
defy crackdown link
As traders buy/sell bitcoin directly with each
other via peer-to-peer market place and apps
All of that shows limitations of governments trying to
control the market
EURUSD
Lots of ECB/Fed speakers till weekend and next Fed Chair
speculations to move the market
Warsh seems to be the favorite (most hawkish, pro-USD)
If Powell is in, risk for USD
Other candidates: Yellen, Cohn, Taylor, Hubbard, Allison
Support around 1.1708/20 held, closing this week above
1.1836 can extend the USD weakness
Support at 1.1766 (Ichimoku) 1.1720 (38.2% Fibo), 1.1708
(200 WMA)
Resistance at 1.1780, 1.1812 (10 DMA), 1.1862 (23.6%
Fibo), 1.1846 (50 DMA)
A new Head & Shoulders on EURUSD daily chart? Will
see...
Let's peak back to around 1.1900
Then go lower towards 1.1450-1.1500 level...
Source: Saxo Bank
USDJPY
Market having difficulties to break 113.00 on Fed
Chair/US yields
Bulls may get nervous if 113.30 not decisively broken
Resistance at 113.25
Support at 111.85 (23.6% Fibo), 112.28 (10 DMA)
Gold
Supported by weaker USD
Trump ratings heading lower, likelihood of more
irrational behaviour growing
Resistance at 1281 (50.0% Fibo)
Support at 1272 (100 DMA), 1263 (61.8% Fibo)
1268 strong support (38.2% Fibo of Dec-Sep rally)
Data/events
ECB Governing
Council meeting
ECB’s Draghi (1315
GMT)
Fed’s Bullard (1500
GMT)
Fed’s Yellen
(1515/1915 GMT)
Fed’s Powell
Thu
ECB Minutes
ECB’s Praet (0430
GMT)
ECB’s Coeure (0815
GMT)
Fed’s Powell (0910
GMT)
Fed’s Williams
(0910 GMT)
Fed’s Harker (1000
GMT)
Fed’s George (1630
GMT)
Fri
US NFPs – 98k exp
vs 156k prev
Unemployment rate
at 4.4%
Earnings +0.3% vs
+0.1% prev
Fed’s Bostic (0915
GMT)
Fed’s Rosengren
(1145 GMT)
Fed’s Dudley (1215
GMT)
Fed’s Kaplan (1245
GMT)
Fed’s Bullard (1300
GMT)
Oct 1-7 – Golden
week holiday in China/Korea
Oct 18 – China
National Congress
Oct 22 – Japanese
elections
Oct 26 ECB
Should you have any questions feel free to contact me
anytime.
Good luck Champs!
Mr Hawk
DISCLAIMER: This material was created for informational
purposes only and represents the Land of Trading team’s view of the past and
current economic and capital market environment. It is not an investment advice
and should not be viewed that way at all, and the creators of this material
cannot be held liable for any potential losses resulting from trading, where
despite this disclaimer someone would consider this material as an investment
advice. All rights reserved ©2016. Contact: landoftradingATgmailDOTcom
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