Forex Brokers Intel Posted Better Than Expected Earnings And Revenue

Intels better than expected earnings and revenue indicating a better than expected economic recovery will drive the European equity markets this morning.

Calendar

Economic Data Releases
Country	Name	Time (GMT)	Expectation	Prior	Comment
UK	08:30	Claimant Count Rate (SEP)	5.1%	5.0%
EC	09:00	Industrial Production YoY (AUG)	-15.5%	-15.9%
US	12:30	Advance Retail Sales (SEP)	-2.1%	2.7%

Earnings Data Releases
Country	Name	Time (GMT)	Expectation	Prior	Comment
US	Bef-Mkt	Abbott Laboratories	0.896
US	15:00	JPMorgan	0.508

What's going on?

Intel announced very good results yesterday with sequential revenues and earnings growth (and both also beat analysts' expectations). Intel's solid performance will drive equities higher today from the get go.

The earnings season is picking up steam and several companies will report results today. We maintain our expectation that earnings in general will beat analysts' estimates, which in turn will drive markets higher. In particular, pay attention to JPMorgan.

We see a resistance around 1,079 in S&P 500, and if we break through that level (the future currently implies that we will) our eyes will be on the 1,121 resistance level.

In terms of macro data, the main releases today will be US Retail Sales and minutes from the FOMC meeting.

FX

FX	Daily stance	Comment
EURUSD	0/+	Still prefer to buy dips down to 1.4850 for a push through 1.49 en-route to 1.50 eventually
USDJPY	0/-	Res now at 89.50 for a push down to 88.60, then 88.25
EURJPY	0/-	Seen capped at 133.0 now for a push back to 131.50 lvls, stop abv 133.50
GBPUSD	0/-	Risk current rebound can reach 1.6025-30 but still sell for 1.55850 again, stop abv 1.6120
AUDUSD	0/+	Rally expected to continue to 0.9280 lvls while support at 0.9090 holds

Equities

Equities	Daily stance	Comment
DAX	0/+	Buy on dips towards 5700 targeting 5757. S/L below 5675.
FTSE100	0/+	Buy on dips towards 5145 targeting 5182. S/L below 5130.
S&P500	0/+	Buy at the break of 1080 targeting 1088. S/L below 1077.
Nasdaq100	0/+
Dow Jones	0/+

Futures

Commodities	Daily Stance	Comment
Gold	0/+	Look to buy dips down to 1,060 for another test for new 2009 highs. Nervous below 1,050
Silver	0/+	Expect break abv 18.0 to target 18.40 levels. Below 17.80 would defer
Oil (CLX9)	0/+	Next target at 75.90. Above there and it's open skies up to $95 ! Suppt now 73.50

FX Options

FX- Options	Comment
EURUSD	Market was bid for 4mth and out vega with downside interest. Risk reversals getting paid (buying EUR puts) as well so the curve should remain well supported.
USDJPY	Gamma turns better bid as Dollar selling continues. 1mth riskies is back at 2.0 favouring USD puts so market is still nervous around these levels.
AUDUSD	Vols were bid this session as spot drives higher above 91.00 Gamma remains well bid and risk reversals are moving away from AUD puts towards flat.

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