Asset purchase programme extended to March [HEAT] Mads Koefoed, Filed in: Macro Update 24 September 2009 at 7:59 GMT Non-Independent Investment Research Daily Trading Stance Mixed signals from central banks: The Federal Reserve will keep interest rates low for another period and also extended the asset purchase program to March, while Canada and Norway is signaling that they are ready to hike; stocks will be supported by the Fed's statement, but once other central banks start to signal hiking interest rates stocks will be under pressure. Initial Jobless Claims surprised to the upside last week due to Labor Day. Watch out for a worse than expected number today as those first time claimants who missed out will make sure that they get benefits this time. Hennes & Mauritz reported Q3 results earlier today. Net income rose to SEK 3.46bn (3.33bn), which was slightly below the SEK 3.5bn estimate Calendar GE 08:00 IFO Busi. Climate / Expectations (SEP) 92.0 / 96.6 90.5 / 95.0 US 12:30 Initial / Continuing Jobless Claims 550K / 6183K 545K / 6230K US 14:00 Existing Home Sales (AUG) 5.35M 5.24M FX EURUSD 0/- If we hold below 1.4750-60, expect a deeper retracement below 1.46. Abv sees 1.4825. USDJPY 0/+ Expect suppt at 90.50 to hold for a bounce back to 91.50-65 levels. EURJPY 0/- Expect slow drift down to 133.0, poss 132.50 now 134.0 has broken. GBPUSD 0/- Still look to sell rallies to 1.64 for a push back to 1.63, poss 1.6250. stop abv 1.6455. AUDUSD 0/- Expect res at 0.8730 to contain current rally for re-test of 0.8650 lvls. Abv sees 0.88 again. Equities DAX 0/+ Buy at the break of 5645 and target 5692. Stop below 5626. FTSE 0/+ Buy at the break of 5091 and target 5130. Stop below 5075. S&P500 0/+ Buy at the break of 1060 and target 1070. Stop below 1056. Nasdaq100 Dow Jones FX-Options EURUSD Large US investment bank paid for 6 day 1.46 in good size, however there were plenty of sellers there as well. Talk of barriers up to 1.50. Do not expect spot to break out soon. USDJPY Front end continues lower even as spot makes new session lows. Downside shortdate 90.50-90.00 strikes finds a few buyers but risk reversals down the middle are weak. AUDUSD 1 mth got given early on at 13.85% and rest of the front end sellers soon came along. Spot seems unable to push above 8730 but even if it does, it will be a slow grind higher. Futures Gold 0 Lack of follow-through on upside. Expect to trade 1,005-1,015 today. Silver 0/- Dollar rebound expected to cap silver at 16.95 lvl. Next suppt 16.55-60. Oil 0/- High inventories pressuring downside. Suppt at 68.0 then 66.50. Tweet Like LinkedIn Share Google+ Previous Next Comments Please sign in to comment. Tweet Like LinkedIn Share Google+ Related articles Re-election of Bernanke could spur risk appetite again Watch out for US housing data today Temporary retracement in risk, look for buying opportunities on dips Focus on the US banking sector Alcoa kicks off the earnings season in poor fashion Topics This post apears under the following topics... GBPUSD EURJPY forex AUDUSD Housing Starts and Completions FTSE100 equities USDJPY gold silver DAX EURUSD DJI