Developed macro
1. Markets disappointed by Operation Twist and downbeat Fed outlook. Risk assets set to remain under strong pressure
2. Eurozone ‘flash’ PMI indices to fall further while remaining consistent with subdued, albeit positive GDP growth.
3. FOMC to shift $400 billion in Twist operation to put downward pressure on longer-term interest rates and ease broader financial market conditions.
Interest rate strategy
1. FOMC surprises with the duration decision
2. Euro-peripherals to remain under pressure ahead of key events next week
3. Flatness of Eonia forwards reflect ECB uncertainty
FX strategy
1. FOMC meeting is not a game changer for the USD.
2. The EUR is proving strangely resilient to the rumours, but the data will still be difficult.
3. BoE prepares the market for QE2 – GBP downside.
Emerging markets
1. EM sentiment hit by FED highlighting downside risks to US economy
2. Asian currencies to suffer
3. Chinese manufacturing PMI in focus
4. South Africa to stay put on rates
Commodity markets
1. Silver and platinum are more favoured by the LBMA delegates.
2. Copper: Strikes and strong Chinese import data to the rescue.
3. US API reported a surprising increase in US crude oil stock last week.
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http://www.easyforexnews.net/wp-content/uploads/2011/09/WMT_2011-09-22.pdf
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