Financial Advisor

US Unemployment - Wakeup Call

The positive sentiment could continue ahead of the US labor market data today, but the market is likely to be disappointed as the Unemployment Rate has a high likelihood of being released at 10%



Calendar

Economic Data Releases

Country
Time (GMT)
Name
Expectation
Prior
Comment
GE
11:00
Factory Orders MoM (SEP)
1.0%
1.4%

US
13:30
Change in Nonfarm Payrolls (OCT)
-175K
-263K
Saxo exp.: -205K
US
13:30
Unemployment Rate (OCT)
9.9%
9.8%
Saxo exp.: 10.0%



What's going on?

Theme Comment
·         Strong rally in stocks yesterday, engulfing all price action on Wednesday in S&P500. The positive sentiment could continue ahead of the US labor market data today, but the market is likely to be disappointed as the Unemployment Rate in our opinion has a high likelihood of being released at 10% and the NFP could also disappoint. Look for the Participation Rate and Weekly Hours as well.
·         Our stance: Don’t be long over the figures. Buy on eventual dips afterwards.
·         The RBA was decidedly bullish on the Australian economy o/n and AUDUSD is likely to test the previous highs within next week.



FX


FX
Daily stance
Comment
EURUSD
0/+
Prefer to buy dips to 1.4835-45 for a rebound through 1.49 targeting 1.4950-60. Stop below 1.48
USDJPY
0
Likely stuck in a 90.40-91.20 range
EURJPY
0
Expect to trade in a 134.25 – 135.35 range today
GBPUSD
+
Chance of further upside after y’day’s action. Break abv 1.6625 tgts 1.67, suppt 1.6540-50
AUDUSD
+
Buy break abv 0.9150, or any dip down to 0.9080, for 0.9220 then 0.9260


FX Options


FX-Options
Comment
EURUSD
Vols heavily offered yesterday as large DNTs being protected in both directions.

Believe vols will sell off further and expect a tight range for the rest of the year.
EURCHF
Vols slightly bid and RR trading further in favour of EURCHF.

Huge options related stops between 1.5000 and 1.5050.






Equities


Equities
Daily stance
Comment
DAX
0/+
Buy on dips towards 5412 targeting 5471. S/L below 5380.
FTSE
0/+
Buy on dips towards 5100 targeting 5138. S/L below 5075.
S&P500
0/+
Buy on dips towards 1051 targeting 1060. S/L below 1045.
Nasdaq100
0/+

DJIA
0/+




Futures

Commodities
Daily Stance
Comment
Gold
0/+
Buy on dips towards 1085 and target 1095. Stop below 1080.
Silver
0/+
Buy at the break of 17.62 and target 17.85. Stop below 17.50.
Oil (CLZ9)
0/-
Sell on the break of 79 and target 77.50. Stop above 80.30.

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