MEXICO: BBVA’s Consumption Indicator Rises In May On Sales Driven Goods Spending

• Spot gold has risen by 1.8% to $3,288/oz, bringing the yellow metal to its highest level since May 12.
• Analysts at Saxo bank said that short covering, once gold breached the $3,250 level, triggered the further move higher as the market assesses whether it is past peak optimism.
• The move has seen gold pierce initial resistance at $3,259.3, the 20-day EMA, a clear break of which would turn attention to $3,347.5, the May 9 high.
• Silver has also rallied sharply today, with the precious metal up by 2.0% at $33.0/oz, the largest one-day gain since May 6.
• A bullish theme in silver remains intact, with resistance to watch at $33.686, the Apr 25 high. Clearance of this level would confirm a resumption of the uptrend.
• Meanwhile, crude prices have struggled for clear direction and are holding within yesterday’s range as the market continues to watch progress on trade, Iran and Ukraine.
• WTI Jun 25 is down by 0.1% at $62.6/bbl.
• For WTI futures, key resistance to watch is $63.4, the 50-day EMA, a clear break of which would highlight a stronger reversal, opening $65.82, the Apr 4 high.
• Elsewhere, Henry Hub has surged by over 10%, with support coming from warmer weather forecasts amid the transition from a mild spring to summer.
• Traders are also capitalising on lower prices, which has sparked some bargain buying, Bloomberg reported.

• Date $MM Issuer (Priced *, Launch #)
• 05/20 $7B #Siemens $1B 3Y +40, $500M 3Y SOFR+64, $1B 5Y +55, $1B 7Y +65, $1.5B 10Y +75, $1.25B 30Y +85, $750M 40Y +95
• 05/20 $2B #Snam $750M 5Y +105, $750M 10Y +130, $500M 30Y +155
• 05/20 $2B *McKesson $650M 5Y +60, $650M 7Y +70, $700M10Y +80
• 05/20 $1.55B #NatWest $300M 4NC3 SOFR+110, $1.25B 6NC5 +105
• 05/20 $1.5B #Rentenbank 5Y SOFR+42
• 05/20 $1.25B #Pricoa $650M 5Y +65, $600M 10Y +88
• 05/20 $1.2B #Texas Instruments $550M 5Y +45, $650M 10Y +63
• 05/20 $750M #Kenvue Inc 7Y +60
• 05/20 $750M DaVita 8NC3 6.875%a
• 05/20 $500M #Lincoln Financial 3Y +70
• Expected Wednesday:
  • 05/21 $Benchmark OKB 3Y
  • 05/20 $Benchmark ADB 5Y SOFR+45
  • 05/21 $Benchmark Kommunalbanken +5Y SOFR+53a

• RES 4: 150.49 High Apr 2   
• RES 3: 149.28 High Apr 3
• RES 2: 148.54/65 76.4% of Mar 28 - Apr 22 bear leg / High May 12
• RES 1: 146.23 50-day EMA 
• PRICE: 144.70 @ 16:37 BST May 20
• SUP 1: 144.27/143.45 50.0% of Apr 22 - May 12 bull leg / Low May 8      
• SUP 2: 142.36 Low May 6 
• SUP 3: 141.96 76.4% retracement of the Apr 22 - May 12 bull leg  
• SUP 4: 139.89 Low Apr 22 and a bear trigger

USDJPY continues to trade below the May 12 high and the pair maintains a softer tone. The latest pullback signals the end of the corrective cycle since Apr 22. A stronger reversal lower would expose 142.36, the May 6 low. Note that the 20-day EMA, at 145.18, has been cleared. The breach strengthens a bearish theme. Key short-term resistance has been defined at 148.65, the May 12 high.