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Christian Tegllund Blaabjerg
Analysis by : Christian Tegllund Blaabjerg
Market Strategist
Friday, Mar 12, 2010, 07:44

Look Out For US Retail Sales

US Retail Sales is the most important number out today, but we are once again dealing with a February number and the weather impact is an unknown. We expect stronger than expected numbers.




What's going on?

Theme Comment

·         The Swiss National Bank was slightly more positive in yesterday’s assessment and the bank raised its 2010 GDP forecast from 0.5-1.0% to 1.5% while price stability is still expected in the short term. We are bullish on the CHF.

·         US Retail Sales is the most important number out today, but we are once again dealing with a February number and the weather impact is an unknown. Vehicle sales dropped for a second month in a row in February and they are now down 8% from December.

·         Later we have the U. of Michigan consumer confidence report and business inventories. We are not as optimistic as consensus regarding inventories as we look for a decline of 0.1% decline vs. an increase of 0.1% for consensus.

·         If we close above 1150 today in S&P 500 and open higher on Monday we could have a strong signal for further strength in the near future with our sight set on the 1200 mark.

 

 



Calendar

Economic Data Releases

 

Country

Time (GMT)

Name

Saxo

Consensus

Prior

EC

11:00

Industrial Production MoM (JAN)

0.7%

0.7%

-0.5%

US

13:30

Retail Sales / ex Autos MoM (FEB)

0.1% / 0.2%

-0.2% / 0.1%

0.5% / 0.6%

US

14:55

U. of Michigan Confidence (MAR)

 

74.0

73.6



FX

FX

Daily stance

Comment

EURUSD

0/+

Buy at the break of 1.3707 targeting 1.3735. S/L below 1.3692.

USDJPY

0/+

Buy on dips towards 90.60 and target 90.82. Stop below 90.53.

EURJPY

0/+

Buy on dips towards 124.00 and target 124.35. Stop below 123.88.

GBPUSD

0/+

Buy at the break of 1.5086 targeting 1.5121. S/L below 1.5070.

 

AUDUSD

0/+

Buy on dips towards 0.9160 and target 0.9188. Stop below 0.9150.

 



FX Options

FX-Options

Comment

EURUSD

Front end getting marked a lot lower in the market as it seems the market is getting

 

comfortable with these spot ranges. Unlikely gamma finds any firm bids into the weekend.

USDJPY

Yen vols have ticks lower as spot maintains a range around 9050. Vega once again gets

 

sold and it would seem rest of the curve would follow lower.

AUDUSD

Expiries around 9150 to TK cut has kept spot pinned. Gamma continues to trade at very

 

low levels and 1m is now at 10.7 vs 12.5 last week.



Equities

Equities

Daily stance

Comment

DAX

0/+

Buy on dips towards 5906 targeting 5940. S/L below 5891.

FTSE

0/+

Buy on dips towards 5595 targeting 5619. S/L below 5583.

S&P500

0/+

Buy on dips towards 1145 targeting 1150. S/L below 1141.

NASDAQ100

0/+

 

DJIA

0/+

 

 



Futures

Commodities

Daily Stance

Comment

Gold

0/+

Easing dollar pushing gold higher. Buy dips down to 1108.

Silver

0/+

Buy dips down to 17.08 looking for 17.25 on topside.

Oil (CLJ0)

0/+

March crude hovering at 80.00, unable to break higher conclusively.  Buy dips down to 79.60 looking for short term support to hold

 

 

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