20 Sept. Risk assets in demand. All eyes now on the Fed.

By | September 20, 2017

 

While the market waits on the outcome of today’s FOMC Meeting, the main focus on Tuesday was on Donald Trump’s belligerent speech to the UN although there were no major market ramifications emanating from that, so traders will now largely sit on their hands while waiting for the Fed to give a clearer vision of the start of the balance sheet reduction program. EurChf briefly reached levels last seen in Jan 2015 following a strong German ZEW figure, while the Aud and Kiwi both remain firm due to improving strong risk appetite, while Sterling regained some minor ground after the dip following BoE Governor Mark Carney’s cautious speech yesterday. Stocks crept to another all time high, while Gold and Silver were both a touch higher and WTI is back above 50.00pb.

As for the coming session, there is a little bit to watch ahead of the FOMC outcome. Japan will release the adjusted trade balance for August, while in Australia we get the WBC Leading Economic Index. Later on, the ECB Non – MP Meeting minutes will be released but are not expected to create any waves and more focus may lie in the UK Retail Sales for August (exp 0.2% mm, 1.1% yy). From the US, ahead of the FOMC, the Existing Home Sales (exp +0.3% mm, 5.46 mio) and the EIA Crude Oil Stocks Weekly Change (exp 2.295 mio) will be the focus. The Fed will keep rates on hld but will announce the start of the BS reduction programme and, while largely written in,  I suspect could induce some dollar buying

The levels in this table are a guide only.

CURRENCIES
EURUSD: 1.1995
Res  1.2005  1.2030  1.2070
Sup  1.1965  1.1950  1.1910
USDJPY: 111.55
Res  111.85  112.20  112.40
Sup  111.20  111.00  110.60
GBPUSD: 1.3512
Res  1.3530  1.3555  1.3590
Sup  1.3490  1.3450  1.3470
USDCHF: 0.9621
Res  0.9650  0.9680  0.9705
Sup  0.9595  0.9565  0.9550
AUDUSD: 0.8008
Res  0.8020  0.8035  0.8050
Sup  0.7990  0.7960  0.7940
NZDUSD: 0.7319
Res  0.7325  0.7345  0.7365
Sup  0.7300  0.7265  0.7250
INDICES / COMMODITIES
S&P: 2502
Res  2505  2510  2515
Sup  2495  2490  2485
DJI: 22324
Res  22350  22400  22450
Sup  22250  22200  22150
ASX SPI: 5714
Res  5730  5745  5760
Sup  5700  5685  5670
XAUUSD: 1311
Res  1315  1325  1335
Sup  1305  1300  1290
XAGUSD: 17.30
Res  17.35  17.45  17.60
Sup  17.20  17.05  16.90
WTI: 50.26
Res  50.90  51.90  52.90
Sup  49.65  48.90  48.00