Obama will be looking to pressure health care companies to deliver cheaper products to the US Government. This made equities trade lower in the US yesterday and Europe will follow


Economic Data Releases
CountryNameTime (GMT)ExpectationPriorComment
ECE-Z CPI YoY (Jan)10:001.1%1.6%
USGDP QoQ (annualized)13:30-5.4%-3.8%
USUniversity of Michigan Confidence (FEB)15:0056.056.2

Earnings Releases
CountryNameTime (GMT)ExpectationPriorComment
ESSacyr Vallerhermoso-0,140
ITTelecom Italia-0,021

What's going on?

European banks sector in trouble; are about to receive 24.5 bln. EUR in loans from World Bank, EBRD and EIB.

Japanese industrial production falls by record 10%; Japan is moving closer to a deeper recession as consumer spending abroad pummels the country's exports. Exports dropped by record 45.7%


FXDaily stanceComment
EURUSD0/+1.2790-10 res looks solid. Buy break above else we range-trade 1.2660-1.2780.
EURJPY0/-126.0 looks to cap for now, risks deeper correction to 122.00 level.
USDJPY0May have seen temp peak at 98.70. Failure to regain 98.0 handle risks 96.30-35.
GBPUSD0Ranging 1.4250-1.4380. Buy break above for 1.4450-70.
AUDUSD0/+Losses likely limited to 0.6400 suppt. Buy dips for push through 0.6500 for 0.6550-0.6600.


EquitiesDaily stanceComment
DAX-Sell at the break of 3912 targeting 3846 initially, 3790 finally. S/L at 3975.
FTSE-Sell at the break of 3875 targeting 3817 initially, 3772 finally. S/L at 3900.
S&P500-Sell at the break of 738 targeting 700. S/L 750.


CommoditiesDaily StanceComment
Gold (XAUUSD)0/-Break through 950.0 indicates further weakness. Res 950.0 with med-term tgt still 850.0.
Silver (XAGUSD)0/-Squeezing lower. Seen pushing through 13.0 for 12.80.
Oil (CLJ9)+Current bull run seen extending to 45.70 res, then 48.0. Suppt at 41.50.

FX Options

EURUSDVols moved lower generally, with the curve flattening as spot stayed in range. Gamma should see offers today if spot fails to break any new ground.
AUDUSDCurve remains unchanged today with some interests selling short date strangles 6790 and 6250 strikes for early March so spot should be kept in range in the short term.
USDJPYFront end gamma became quickly bid after the opening as spot broke under 98 and the rest of the curve followed higher. 98 level for NY cut should be in play today.


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