Daily Outlook :10.23.2013 Most European binary options are falling from yesterday levels and at the same time, Asian futures are losing ground. There are some fears among several binary traders that the Fed might be removing its easy-money policy resulted in a volatile summer for Asian markets, especially in Southeast Asia, and non-farm payrolls were watched intensely as a possible forecast of the central bank’s intentions. The worse-than-expected jobs reading overnight reinforces the idea that stimulus will remain unchanged until next year. The Asian markets are trading mostly lower, with the markets in Japan and China falling sharply, as the Japanese yen strengthened and Chinas money-market rates surged amid talk that the Peoples Bank of China is refraining . Nikkei (14741.28, +28.03) is up but has Resistance near 14800. The fall in Dollar-Yen could pull the Nikkei down and it can target 14400 if the Resistance holds. Shanghai (2220.82, +10.17) is up. Moving sideways for now. Whether it rises to 2400 to falls to 2000 is still unsure. European stocks may drift lower on Wednesday as weaker-than-expected jobs data pointed to a tepid U.S. recovery. A partial U.S. government shutdown during the fiscal impasse has cut 0.25 percentage point off the fourth- quarter economic growth and cost the worlds largest economy 120,000 jobs in October, Jason Furman, who chairs the White House Council of Economic Advisers, told reporters at the White House briefing yesterday. The October jobs report is slated for release on November 8. Both Nokia and Microsoft are soon are becoming part of the same smart phone brand, just hours before Apple is expected to unveil updated versions of the iPad and iPad Mini. Nokia (the Finnish company) last month merged its handset division with Microsoft in a 5.44 billion euro ($7.43 billion) deal showed off its first ever tablet. The German DAX advanced 0.9 percent, the U.K.s FTSE 100 added 0.6 percent and Frances CAC 40 closed up 0.4 percent. U.S. markets moved higher from session lows close in the green yesterday. The S&P 500 has hit a fresh high above 1,750. A much weaker than expected non-farm payrolls report (NFP) boosted sentiment the Federal Reserve will delay tapering back it asset purchase program. The S&P 500 was up 10 points to close above the 1,750 level for the first time at 1,754.67. The DJIA was up 75.46 points to close at 15,547.66. The Nasdaq Composite rose 9.52 points to end at 3,929.57. This is a new 13 year high for the tech heavy index. The NFP report showed that U.S. employers added a tepid 148K jobs in September. We had expected a print of 180K new jobs. The Unemployment rate dropped to 7.2 percent. This is its lowest level since November of 2008. The NFP was delayed since October 4, more than two weeks, thanks to the recent budget shutdown of the U.S. Government. We are now anticipating the Fed will delay pairing back its $85 billion a month bond buying program until sometime in 2014. CURRENCIES: EUR/USD (1.3775) soared after the tepid NFP. We are aiming for 1.3900 at this point while above 1.3710. The U.S. dollar Index (79.187) continue to show weakness, especially after the NFP. We are targeting 78.89 at this point. We need to close above the key 80.00 level to relieve downward pressure. The USD/JPY (97.424) has weakened from 98.47. Overall we are stuck in a sideways pattern from 97.00 towards 99.49/50 for the time being. The GBP/USD (1.6247) has risen and may target 1.63-1.64 in the near term. The AUD/USD (0.9741) has met our target at the 200-day MA near 0.97 but might see some profit taking now between current levels and 0.978. COMMODITIES: WTI Crude (97.87) has been falling as crude inventories in the U.S. are rising. Gold (1340.60) has risen on the fall in the Dollar. It has a Double Bottom and can now target 1375-1425. Silver (22.75) is holding above support at the 13-Week MA. Although it has Resistance near 23, the falling Gold-Silver ratio suggests Silver could move higher towards 24. STOCKS : The S&P 500 was up 10 points to close above the 1,750 level for the first time at 1,754.67. The DJIA was up 75.46 points to close at 15,547.66. The Nasdaq Composite rose 9.52 points to end at 3,929.57. This is a new 13 year high for the tech heavy index. Asian markets lost all early gains to move firmly lower. Would seem we have some profit taking occurring as investors want to lock in this week’s strong gains. The Nikkei has fallen below 14,700. The Shanghai Composite has hit a one week low and is at 2,184.87. The Kospi, in South Korea, hit a two year high then fell back to 2,043.34. The S&P/ASX, in Australia, is holding on to its five year high. The Australian benchmark is bucking the trend and is higher at 5,374.80. European markets were mostly higher, yesterday, on Fed hopes of delaying its asset purchase reduction. The French CAC finished flat on the day. WHAT TO WHATCH TODAY: We continue to get a plethora of data out of the U.S. today. Mortgage applications, import/export prices (delayed from September), FHFA home prices and oil inventories. Mark Owen Senior Account Manager UK Phone: +44-8000-885147 | Website: tradehits Email: Mark@tradehits | Facebook :/facebook/mark.owen.3781995 Disclaimer: The information in this analysis is collected from different sources and should serve for informative purposes only. The author shall not be held responsible for the validity of the presented information. No part of this analysis recommends the purchase or sale of a currency pair or any other financial instrument.
Posted on: Wed, 23 Oct 2013 09:22:53 +0000
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