Risk appetite back on better than expected US labour market data Christian Blaabjerg, Filed in: 3 numbers to watch 07 December 2009 at 8:31 GMT Non-Independent Investment Research Daily Trading Stance Much stronger than expected US labor market data on Friday. So strong, that the negative correlation between the USD and stocks broke down (turned positive). We note that the avg. Weekly Hours was out at 33.2 vs. 33.0 expected. An increase in Weekly Hours is what is usually seen in recoveries, since employers first ask their employees to work longer hours before hiring again. This might be very significant. With the JPY TWI under severe pressure and both sovereign and corporate CDS prices down, it looks like we could again have a risk-embracing environment, in which the USD strengthens. The downtrend in USDJPY might be coming to an end, but we need a couple more days in order to conclude. EURUSD and especially Gold are under pressure. Calendar Economic Data Releases Country Time (GMT) Name Saxo Consensus Prior EC 09:30 Sentix Investor Confidence (DEC) -7.0 GE 11:00 Factory Orders MoM (OCT) 0.8% 0.9% CA 13:30 Building Permits MoM (OCT) 1.0% 1.6% FX FX Daily stance Comment EURUSD 0/- Sell on rallies towards 1.4950 and target 1.4825. Stop above 1.50. USDJPY 0/+ Buy on dips towards 89.25 and target 90.25. Stop below 88.60. EURJPY 0/+ Buy on dips towards 132 and target 134. Stop below 131.00. GBPUSD 0/- Sell at the break of 1.6423 and target 1.63. Stop above 1.6470. USDCAD 0/+ Buy at the break of 1.06 and target 1.0750. Stop below 1.0520. FX Options FX-Options Comment EURUSD Vols should remain well supported in the front end especially with the market getting bullish about the dollar after Friday but unlikely to last too long after the FOMC next week. USDJPY Gamma looks to be well supported over the FOMC date next week and mid curve is still seeing decent bids this morning so we do not expect vols to come off too much. AUDUSD Vols moved lower from Friday’s post nonfarm numbers. There were noted interest to buy upside 93-9400 area strikes for 1-2mth area in Asia today. Equities Equities Daily stance Comment DAX 0/+ Buy on dips towards 5767 and target 5815. Stop below 5745. FTSE 0/+ Buy on dips towards 5263 and target 5310. Stop below 5240. S&P500 0/+ Buy on dips towards 1100 and target 1114. Stop below 1094. NASDAQ100 0/+ DJIA 0/+ Futures Commodities Daily Stance Comment Gold 0/- Sell on rallies towards 1175 and target 1150. Stop above 1186. Silver 0/- Sell at the break of 18.10 and target 17.75. Stop above 18.25. Oil (CLF0) 0/- Sell on rallies towards 76.30 and target 74.90. Stop above 77.50. Tweet Like LinkedIn Share Google+ Previous Next Comments Please sign in to comment or ask the author a question about this article. Recommended Recommend Unrecommend Recommend 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 Bank of England minutes the main event today US Existing Home sales may surprise to the upside and lead equities higher Topics This post appears under the following topics... GBPUSD EURJPY forex AUDUSD Housing Starts and Completions macro FX Options commodities FTSE100 USDCAD equities USDJPY gold silver DAX EURUSD DJI