EURGBP TECHS: Bear Cycle Extends
- RES 4: 0.8557 High Apr 28
- RES 3: 0.8541 High May 2
- RES 2: 0.8493 High May 9
- RES 1: 0.8444 50-day EMA and a key near-term resistance
- PRICE: 0.8369 @ 06:40 BST May 29
- SUP 1: 0.8355 Intraday low
- SUP 2: 0.8327 1.382 proj of the Apr 11 - 16 - 21 price swing
- SUP 3: 0.8316 Low Mar 28 and a key support
- SUP 4: 0.8277 1.618 proj of the Apr 11 - 16 - 21 price swing
A bear cycle in EURGBP remains in play and this week’s fresh cycle lows reinforce this theme. The move down signals scope for an extension towards 0.8316, the Mar 28 low and a key support. A break of this level would strengthen a bearish theme. Resistance to watch is at the 50-day EMA at 0.8444. A clear break of this average is required to highlight a stronger reversal and shift attention to resistance at 0.8541, the May 2 high.
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EUROSTOXX50 TECHS: (M5) Corrective Phase Remains In Play
- RES 4: 5341.00 High Mar 27
- RES 3: 5263.01 76.4% retracement of the Mar 3 - Apr 7 bear leg
- RES 2: 5165.00 High Apr 3
- RES 1: 5150.00 High Apr 28
- PRICE: 5122.00 @ 06:10 BST Apr 29
- SUP 1: 4959.00/4812.00 Low Apr 23 / 16 and a key support
- SUP 2: 4664.00 Low Apr 10
- SUP 3: 4444.00 Low Apr 7 and the bear trigger
- SUP 4: 4336.00 Low Nov 28 ‘23 (cont)
Eurostoxx 50 futures maintain a positive tone and are holding on to their recent gains. The contract has cleared the 20-day EMA and pierced the 50-day EMA, at 5101.76. A clear break of this average would strengthen the current bull cycle and signal scope for a continuation of the corrective uptrend. This would open 5165.00 next, the Apr 3 high. Support to watch lies at 4812.00, the Apr 16 low. Clearance of this level would highlight a reversal.
CHINA: Country Wrap : Bessent Pushes Back on China
- Treasury Secretary Scott Bessent said “all aspects” of the US government are in contact with China but that it’s up to Beijing to take the first step in de-escalating the tariff fight with the US due to the imbalance of trade between the two nations. “We’ll see where this goes,” Bessent said in an interview with CNBC. “As I’ve repeatedly said, I believe it’s up to China to de-escalate because they sell five times more to us than we sell to them, so these 125% tariffs are unsustainable.” (source BBG)
- China International Capital Corp., is seeking to tap growing demand for cross-border financial services in the Persian Gulf and Southeast Asia as the firm pushes its global expansion. Beijing-based CICC planning to open in Dubai to target sovereign wealth funds and conglomerates in the Gulf region (source BBG)
- The Hang Seng rose just +0.12% today despite a broader regionally positive day whilst the CSI 300 fell -0.13%. Shanghai Comp was down -0.03% and Shenzhen held onto modest gains of +0.35%
- Yuan Reference Rate at 7.2029 Per USD; Estimate 7.2803
- A positive day for bonds following the injection of liquidity in the OMO. CGB 10yr -1bp lower at 1.63%
LOOK AHEAD: UK Timeline of Key Events (Times BST)
| Date | UK | Period | Event |
| 29-Apr | 1040 | --- | BOE Ramsden At Innovate Finance Global Summit |
| 30-Apr | 1630 | --- | BOE Lombardelli At Economics Teacher Training Launch |
| 01-May | 0930 | Mar | BOE Lending & M4 |
| 01-May | 0930 | Apr | S&P Final Manufacturing PMI |
| 06-May | 0930 | Apr | S&P Global Services/Composite PMI (Final) |
| 07-May | 0930 | Apr | S&P Global/CIPS Construction PMI |
| 08-May | 1200 | --- | Bank Of England Interest Rate |
| 08-May | 1230 | --- | BOE Press Conference |
| 08-May | 1400 | Apr | Decision Maker Panel data |
| 09-May | 0940 | --- | BOE Bailey Keynote Address at Reykjavik Conference |
| 09-May | 1215 | --- | BOE's Pill At National MPC Agency Briefing |
| 12-May | 1530 | FQ2 | DMO likely to publish FQ2 consultation agenda |
| 13-May | 0001 | Apr | BRC-KPMG Shop Sales Monitor |
| 13-May | 0700 | Mar/Apr | Labour Market Survey |
