Join the conversation + get access to real-time economic calendar data. Sign up for free

3 numbers to watch - Macro analysis on the day’s biggest scheduled economic events

Hope for G20 meeting outcome will lead equities higher

Filed in: 3 numbers to watch
23 September 2009 at 9:22 GMT

Daily Trading Stance

  • Stocks rose in Asia on speculation the Group of 20 Nations will maintain measures to lift the global economy out of its slowdown and this will lead European equities higher as well.
  • Today the FOMC will announce its interest rate though we do not expect any change in policy stance. What will be interesting is to see is whether the Fed will announce any changes to its Treasury program. This is set to expire at the end of October.
  • The Richmond Fed's Manufacturing Survey out yesterday and the employment index surprisingly indicated expansion for the first time in many months.

Calendar

Economic Data Releases

Country

Time (GMT)

Name

Expectation

Prior

Comment

EC

08:00

PMI Manufacturing / Services (SEP)

49.7 / 50.5

48.2 / 49.9

UK

08:30

Bank of England Minutes

US

18:15

FOMC Rate Decision

0.25%

0.25%

 

Earnings Releases

Country

Time (GMT)

Name

EPS exp.

EPS prior

Comment

US

Bef-Mkt

General Mills, Inc.

1.028

0.900

FX

FX

Daily stance

Comment

EURUSD

0/+

Still bullish, targeting 1.49. Buy dips, or go long, stop below 1.4750.

USDJPY

0/-

Rebound from 90.50 looks weak. Expect to drift lower to 90.0. Res 91.25.

EURJPY

0

Res at 135.0 looks strong. Expect to trade a 133.80 -134.80 range.

GBPUSD

0/-

Break abv 1.6410-20 will target 1.65 but sell there for re-test 1.6325.

AUDUSD

0/+

Buy dips to 0.8725 suppt for a push to new 2009 high abv 0.88. Stop below 0.8680.

FX Options

FX-Options

Comment

EURUSD

Front end vols are only slightly firmer as market prepares for FOMC. Risk reversals are

trading around 0.25 EUR calls with good size on each side. Expect narrow range.

USDJPY

Stop hunting early in the session brought spot down to 90.50 along with buyers of

downside gamma. Sellers soon emerge once spot bounced off the lows.

AUDUSD

Pressure is still on for vols as spot grinds towards 8800. Front end will remain depressed

despite the event risk over the next week as spot grinds higher along with weaker USD.

Equities

Equities

Daily stance

Comment

DAX

0/+

Buy on dips towards 5695 and target 5755. Stop below 5683.

FTSE

0/+

Buy on dips towards 5132 and target 5171. Stop below 5121.

S&P500

0/+

Buy at the break of 1074 and target 1082. Stop below 1071.

Nasdaq100

0/+

Buy at the break of 1740 and target 1754. Stop below 1735.

Dow Jones

Futures

Commodities

Daily Stance

Comment

Gold

0/+

Yesterday's break abv 1,010 now targets 1,027-1,030 area. Suppt 1,007.50.

Silver

0/+

While suppt at 17.06 holds, look for further gains up to recent high at 17.63.

Oil

0

Look to trade within a 71.0 -72.0 range.

Comments

  1. Loading...
Please sign in to comment or ask the author a question about this article.
Related articles