Nov 2, 2017 – Market Update (FOMC a non event, Powell in and Tax bill out, BoE hiking after 10 years & taking a long break after…, EURUSD a shadow of USDCNH, IMF not ok with selling volatility products, Apple a big thing after market, Barclays fed up with Brexit and taking actions, Deutsche Bank seeking a second building in Frankfurt)

Mr Price Action/ November 2, 2017/ Market Update, Market Update Posts/ 0 comments

 

Short recap

 

Asia printing new 10-yr high as on optimism from Fed

Europe opening lower

FOMC – no changes, non event

Just reconfirmed all with economic activity to solid from moderate

Dec hike a done deal

IMF warns volatility products loom as next big market shock  link

Selling volatility complex products can be the trigger if volatility suddenly increases

 

Equities

 

Barclays is fed up with how UK is handling Brexit

And implementing their own plan

Deutsche Bank to move more operations to Frankfurt

Herbalife off the Ackman’s short bet who turned to options instead

Signa Holding (owner of Karstadt) eying Kaufhof (owned by Hudson Bay) for USD 3.5 bln

Thanksgiving travels to help airliners

Novo Nordisk warning of US legislation (Trump’s anti industry rhetoric)

 

Earnings

 

Apple – should learn more about Christmas iPhone sales and iPhone X orders

Asia is impressed by iPhone X but are they going to actually buy/afford it?

Others reporting: AlibabaStarbucksAIGDowDuPontCignaBCEBombardier

 

Bonds

 

10-yr Trys yield at 2.36% below 2.40% as attempts to get above faded

10-yr Bund yield at 0.38%

EZ yield spreads contracting, namely IT to GE, ES to GE going to year end

 

EURUSD

 

Resistance at 1.1640 (hourly Ichimoku), 1.1670 (200 WMA), 1.1690 (10 DMA), 1.1695 (100 DMA), 1.1720 (38.2% Fibo)

Support at 1.1630 (hourly Ichimoku), 1.1615 (high from May 2016), 1.1605 (50.0% Fibo), 1.1500

 

Source: Saxo Bank

Is USDCNH telling Us something ? EURUSD bulls need to move above 1.1660 in order the daily H&S to be under pressure…

 

 

GBPUSD

 

BoE hiking after 10 years? One off to 0.50% from current 0.25%

And likely taking a long break after…

Hard to spot any levels of choice as Brexit mess is still ongoing

Support at 1.3222 (50 DMA), 1.3204 (10 DMA)

Resistance at 1.3336

 

Source: Saxo Bank

 

Gold

 

Got some support from Powell nomination

No clear reaction to FOMC’s no change, just a small advance as rate don’t go up immediately

Resistance at 1281 (50.0% Fibo), descending trendline

Support at 1275 (10/100 DMA), 1263 (low & 61.8% Fibo)

 

Source: Saxo Bank

 

Source: Saxo Bank

 

Data/events

 

Fed’s Powell (1230 GMT)

Fed’s Dudley (1620 GMT)

 

Republicans unveiling tax reform bill (1515 GMT)

Rumours on repatriation tax rate:

5% on non-cash

12% on cash

But no offsetting revenue yet

Possibility of a temporary nature of the tax cuts

 

Trump meeting House GOP leaders (1745 GMT)

 

Trump announcing a new Fed chair (1900 GMT)

Powell likely taking the Chair and Taylor his Deputy?

That would be a true shift after Yellen

Powell good for stocks as we can see the continuity

But not much for USD

 

Fed’s Bostic (2215 GMT)

 

Fri

 

US NFPs

Payrolls +310k exp. vs -33k prior

Unemployment rate 4.2% exp. vs 4.2% prior

Hourly earnings 0.2% exp. vs 0.5% prior

 

Fed’s Kashkari (1615 GMT)

ECB’s Coeure (2015 GMT)

 

 

Should you have any questions feel free to contact me anytime.

 

Good luck Champs!

 

Mr Hawk

 

 

 

DISCLAIMER: This material was created for informational purposes only and represents the Land of Trading team’s view of the past and current economic and capital market environment. It is not an investment advice and should not be viewed that way at all, and the creators of this material cannot be held liable for any potential losses resulting from trading, where despite this disclaimer someone would consider this material as an investment advice. All rights reserved ©2016. Contact: landoftradingATgmailDOTcom

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