Developed macro
1. All eyes remain on Europe as the EU Summit on Wednesday will be eyed for a concrete resolution to the region’s crisis
2. Eurozone ‘flash’ PMIs to deteriorate further in October, with the services sector set to underperform
Interest rate strategy
1. Interest rate markets look for guidance from EU officials
2. ECB will announce SMP activity today ahead of a host of refinancing operations in the days ahead
FX strategy
1. USD continues to lose ground as Fed officials veer towards potential for more QE
2. Firmer US Q3 GDP will give the USD some respite but weak consumer confidence highlights the risks going forward
3. EUR looks supported ahead of Wednesday’s EU Summit but risks of disappointment remain high
4. JPY remains largely range bound as sensitivity to risk and yield slips but official concerns are growing
Emerging markets
1. Better sentiment to lift Asian equities and currencies; but trading is likely to be light before official announcement from Europe
2. Taiwanese production to quicken to +6.75% YoY on base effects; should have fallen MoM on weak demand
3. RBI in India to hike key rates by 25bp in view of inflation risks
Commodity markets
1. Gold to rally this week on the back of a stronger EUR.
2. Technically, gold remains in trouble.
3. Base metals to remain event-driven by the politicians in the Eurozone.
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http://www.easyforexnews.net/wp-content/uploads/2011/10/WMT_2011-10-24.pdf
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