Short recap
Asia flat
Europe opening flat
China going for USD denominated bonds again (first
issue from 2004)
ECB day today - lots of uncertainties around QE
cut back (low inflation, strong EUR vs growing economy)
Still not clear whether ECB should do it today or not
A Turkish Central Bank announcement important
today
As there are speculations about Germany (EU) to cut
funding for Turkey
Equities
GaxoSmithKline likely to boost their consumer
health business via acquisitions
Airbus deal with Bombardier might have had
more to do
With technology and production shift to China than with
Boeing
As some Chinese investors were looking at Bombardier as
well
Earnings
Microsoft – expecting higher revenue on cloud
business
Alphabet – expecting higher revenue on mobile,
YouTube, Play Store and cloud
Intel – to benefit from stable PC market and very
good growth from data centers
Amazon.com – retail and cloud should help while
new markets and acquisitions weight
Ford – question is how the weak sales in Europe
and Chine effect the results
Planning to cut USD 14 bln and focus more trucks and
electric/hybrid cars
Newmont Mining – market is looking at
higher revenue on more effective production of gold
Teck Resources – expecting a nice surprise
on higher prices of coal, zinc and cooper
Bonds
10-yr Trys yield at 2.43%, above technical 2.40%
level
10-yr Bund yield at 0.48%
Brazil – the yields highlight upcoming volatility
before next year’s presidential elections
Stocks at records highs, BRL is stable but investors are
getting nervous whether new president
Will keep up with reform process
VIX
What a nice ride for all of those who bet on falling risk
But…things may change, be aware of that
As the Chinese blow out from Aug 2015 shows
What about VIX spiking again 96% ?
Source: Saxo Bank
EURUSD
Easy hawkish surprise but difficult to sell the market
dovish view
Draghi to have a hard time to talk down EUR based on
ongoing price action despite higher US yields
Saw some short covering going to ECB & because of new
question marks appeared around US tax reform
Markets expect dovish taper
See range of 1.1660-1.1860/1.1900+
Resistance at 1.1850 (50 DMA), 1.1862 (23.6% Fibo)
Support at 1.1793 (10 DMA), 1.1783 (200 HMA), 1.1750/60,
1.1720 (38.2% Fibo)
USDJPY
Selling interest above 114.00
Huge expiring options with strikes 113.50-80 and
114.50/115.00
Bids a 113.50, more towards 113.00 with stops below
Support at 112.99 (10 DMA)
Trading around descending trendline after getting close
to recent high at 114.50 from July
Gold
Taylor or Powell ? Taylor can make a hit on gold
As he favours quicker rate hikes and return back to
normal
Resistance at 1281 (50.0% Fibo), 1285 (10 DMA)
Support at 1275 (100 DMA)
Data/events
ECB (1145 & 1230 GMT)
Fed’s Kashkari
(1430 GMT)
Fri
ECB’s Praet (0715
GMT)
Trump announcing a new Fed chair
Nov 1 – FOMC
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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