EU CAPITAL GOODS: Atlas Copco: 3Q25 Results

• BOE Chief Economist Huw Pill explains his dissent in favour of an annual APF reduction of GBP100bln (versus the GBP70bln the MPC voted for) in the text here.
• His comments elaborate on the rationale given in the Minutes which he says "reflects the high weight I place on maintaining continuity and consistency in the MPC’s approach to QT."
• The key part is that "For me, both structural challenges to public debt management and concerns about core market functioning are better dealt with via other means than QT."
• There's nothing in Pill's comments that guide towards Bank Rate, and other than confirming he probably wouldn't want to slow QT next year there isn't a lot of forward-looking information we can gain from his comments.

• In FX, the trend theme in EURUSD remains bullish and the recent pullback is considered corrective. Resistance at 1.1743, the Aug 22 high, has recently been cleared, reinforcing a bull cycle. Gains in the first half of last week resulted in a climb above 1.1829 the Jul 01 high and bull trigger. Clearance of this hurdle confirms a resumption of the primary uptrend and opens 1.1923 next, the 2.00 projection of the Feb 28 - Mar 18 - 247 price swing. Support to watch is 1.1672. the 50-day EMA.
• A bullish theme in GBPUSD remains intact and the move down from the Sep 17 high is considered corrective - for now. However, the pair has traded through the 50-day EMA and this signals scope for a deeper retracement. The next support to watch lies at 1.3449, a trendline support drawn from the Aug 1 low. For bulls, a resumption of gains would refocus attention on key short-term resistance at 1.3726, the Sep 17 high.
• USDJPY recovered sharply from last week’s low and the pair is holding onto the bulk of its latest gains. A bullish candle pattern on Sep 17 - a hammer formation - provided an early reversal signal. A continuation higher would open 149.14, the Sep 3 high. Pivot support is 145.49, the Sep 17 low.

OI data points to net short setting as most SOFR futures ticked lower on Monday.

• There were only very limited and fairly isolated rounds net long cover seen through the blues.