MEXICO: Banxico Likely To Maintain Dovish Bias Amid Investment Slump

Outgoing French Prime Minister Sébastien Lecornu has accepted President Emmanuel Macron's request for “last-ditch talks” with parliamentary leaders aimed at restoring stability. 

• Lecornu wrote on X, “I have accepted, at the request of the President of the Republic, to hold final discussions with the political forces for the stability of the country. I will tell the head of state on Wednesday evening whether this is possible or not, so that he can draw all the necessary conclusions.”
• Macron, who has yet to make a public statement on Lecornu’s resignation, “now has three main choices: He can name a new prime minister, who would then need to propose a fresh cabinet; he could call a parliamentary election; or he could resign himself — something he’s previously said he won’t do,” per Bloomberg.
• The Financial Times notes, “Macron could try to name another premier, his fourth since last summer, this time from the centre left. But the fracture that has now opened up with the mainstream conservatives makes this even less viable than before.”
• Social leader Jean-Luc Mélenchon wrote on X earlier, “Emmanuel Macron must resign or leave following a vote of the assemblies. The people are their own master. In one way or another, it will be summoned again. I invite everyone to check if they are properly registered on the electoral rolls. Register if it is not already done!”

• EUR/USD: Oct08 $1.1700(E1.1bln), $1.1770-80(E1.2bln), $1.1800(E1.4bln), $1.1850-60(E1.0bln); Oct10 $1.1600(E1.3bln), $1.1650(E1.7bln), $1.1700(E1.6bln), $1.1740-50(E2.5bln), $1.1780-00(E2.8bln)
• USD/JPY: Oct08 Y146.50($1.2bln), Y147.00($1.5bln); Oct09 Y150.00-15($1.9bln)

• RES 4: 114-10   High Apr 7 (cont.)
• RES 3: 114-00   Round number resistance
• RES 2: 113-12/29 High Sep 18 / High Sep 11 and the bull trigger 
• RES 1: 113-00 High Sep 24 
• PRICE:‌‌ 112-13+ @ 16:59 BST Oct 6
• SUP 1: 112-12+/01 50-day EMA / 50.0% of Jul 15 - Sep 11 upleg   
• SUP 2: 111-26   Low Aug 26
• SUP 3: 111-13+ Low Aug 18 and a key support  
• SUP 4: 111-01+ 76.4% retracement of the Jul 15 - Sep 11 bull phase  

Treasuries have pulled back from last week’s high print of 112-31+ (Oct 3). Attention is on support at the 50-day EMA, at 112-12+. It has recently been pierced but for now remains intact. A clear break of it would undermine a bull theme and signal scope for a deeper retracement. This would open 111-13+, the Aug 18 low and the next key support. On the upside, initial firm resistance to watch is 113-00, the Sep 24 high. A break would be bullish.