Video

Playlist

Show less
1:32
Why I’m selling EURUSD: Lambert
Clive Lambert - FuturesTechs
Friday at 7:45 GMT
2:43
Why I'm selling DAX: O'Hare
Steve O'Hare - First 4 Trading
Thursday at 8:23 GMT
2:50
Two-way risk for EURGBP — #SaxoStrats
John J Hardy
Tuesday at 11:42 GMT
3:28
Why I'm selling USDCAD: Coleman
Ian Coleman - First 4 Trading
Tuesday at 7:31 GMT
2:15
The week ahead in macro — #SaxoStrats
Kay Van-Petersen
16 October 2017 at 11:17 GMT
23:04
Macro Monday WK 42: China National Congress Party — #SaxoStrats
Kay Van-Petersen
16 October 2017 at 7:42 GMT
Video / 05 October 2017 at 7:38 GMT

From the Floor: USD awaits word from potential Fed chair — #SaxoStrats

#SaxoStrats
   • Potential next Fed chair Powell out at 1310 GMT
   • IBEX 35 volatility continues as Catalans take to the streets
   • Mylan shares soar on generic approval
   • Crude oil prices drop despite major US inventories draw

SaxoStrats
By Michael McKenna

The dollar, as Saxo Bank head of forex strategy John Hardy said late yesterday, is in a bit of a holding pattern as investors await news of the Federal Reserve's post-Janet Yellen plans. This could provide some volatility in the early US session today as we have rumoured Yellen successor (and Federal Open Market Committee voter) Jerome Powell out speaking at 1310 GMT.

Powell, reports CNBC, has already been interviewed by President Trump for the top job although markets continue to view former Fed governor as the odds-on favourite.

According to Deutsche Bank chief economist Peter Hooper, a Powell-led fed would broadly represent "policy continuity".

Along with the Fed we have European Central Bank minutes at 1130 GMT, where investors will continue to parse central bank statements for clues as to when and how the ECB plans to shift towards policy normalisation.

Beyond the central banks, the Spanish standoff between Madrid and Barcelona continues to weigh on the country's benchmark IBEX 35 index where Saxo Bank head of equity strategy Peter Garnry reiterates his view that there is no serious support before 9,550; the IBEX 35 currently trades just shy of 10,000.

One factor, he adds, that could give investors a crucial glimpse into the broader market's appetite for Spanish assets is today's five-year note auction at 0840 GMT.

IBEX 35

Create your own charts with SaxoTraderGO click here to learn more

Source: Saxo Bank 

In single shares, Garnry reports that drugmaker Mylan should be on traders' radar with shares up 16% on approval of the first generic competitor to Teva's Copaxone multiple sclerosis treatment; Teva shares are down a corresponding 15%.

Despite the jump, Garnry cautions that Mylan maintains a poor score in Saxo's equities model due to an unsatisfactory overall technical picture.

Wednesday saw the US release a major crude oil update with the Energy Information Administration reporting that inventories saw a serious drawdown last week on elevated exports.

According to Saxo Bank head of commodity strategy Ole Hansen, US exports have soared by one million barrels/day in just two weeks to reach two million b/d; the year-to-date average is 700-800,000 b/d.

Hansen expects elevated exports to continue for so long as WTI crude is deeply discounted relative to Brent, with Saxo's commodities head noting that he sees Fibonacci support in the latter coming in at $53.70/b.

Gold and silver, meanwhile, are trading in range ahead of today's central bank news.

Federal Reserve
Can Fed speculation give the dollar some direction? Photo: Shutterstock

Michael McKenna is senior editor at Saxo Bank
Relevant articles for you

Disclaimer

The Saxo Bank Group entities each provide execution-only service and access to Tradingfloor.com permitting a person to view and/or use content available on or via the website is not intended to and does not change or expand on this. Such access and use are at all times subject to (i) The Terms of Use; (ii) Full Disclaimer; (iii) The Risk Warning; (iv) the Rules of Engagement and (v) Notices applying to Tradingfloor.com and/or its content in addition (where relevant) to the terms governing the use of hyperlinks on the website of a member of the Saxo Bank Group by which access to Tradingfloor.com is gained. Such content is therefore provided as no more than information. In particular no advice is intended to be provided or to be relied on as provided nor endorsed by any Saxo Bank Group entity; nor is it to be construed as solicitation or an incentive provided to subscribe for or sell or purchase any financial instrument. All trading or investments you make must be pursuant to your own unprompted and informed self-directed decision. As such no Saxo Bank Group entity will have or be liable for any losses that you may sustain as a result of any investment decision made in reliance on information which is available on Tradingfloor.com or as a result of the use of the Tradingfloor.com. Orders given and trades effected are deemed intended to be given or effected for the account of the customer with the Saxo Bank Group entity operating in the jurisdiction in which the customer resides and/or with whom the customer opened and maintains his/her trading account. When trading through Tradingfloor.com your contracting Saxo Bank Group entity will be the counterparty to any trading entered into by you. Tradingfloor.com does not contain (and should not be construed as containing) financial, investment, tax or trading advice or advice of any sort offered, recommended or endorsed by Saxo Bank Group and should not be construed as a record of ourtrading prices, or as an offer, incentive or solicitation for the subscription, sale or purchase in any financial instrument. To the extent that any content is construed as investment research, you must note and accept that the content was not intended to and has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such, would be considered as a marketing communication under relevant laws. Please read our disclaimers:
- Notification on Non-Independent Invetment Research
- Full disclaimer
- 沪ICP备13028953号-1

Check your inbox for a mail from us to fully activate your profile. No mail? Have us re-send your verification mail