EURJPY TECHS: Bear Threat Still Present
Oct-12 07:43
- RES 4: 160.00 Psychological handle
- RES 3: 159.76 High Aug 30 and the bull trigger
- RES 2: 158.65 High Sep 13
- RES 1: 158.61 High Oct 12
- PRICE: 158.46 @ 08:32 BST Oct 11
- SUP 1: 154.46 Low Oct 3
- SUP 2: 154.10 2.0% 10-dma envelope
- SUP 3: 153.39 76.4% of the Jul 28 - Aug 30 bull run
- SUP 4: 151.42 Late July Low and Bear Trigger
EURJPY traded sharply lower last Tuesday and rallies continue to be sold in the cross. As such, a bearish threat remains present. The cross has cleared support at the 50-day EMA and breached 156.59, the Sep 11 low. The break lower highlights a possible short-term reversal. Tuesday’s low of 154.46 represents a key short-term support where a breach would signal scope for a deeper retracement. Initial resistance was cleared at the 50-day EMA of 157.13, ahead of 158.65.
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EGB SYNDICATION: Slovenia 10y USD: Books open
Sep-12 07:42
- IPTs: 3.875% Aug-33 UST + 100bps area
- Size: US$ Benchmark
- Maturity Date: 19 September 2033
- Settlement Date: 19 September 2023 (T+5)
- Joint Bookrunners: Barclays, BNP Paribas, Citi, Deutsche Bank, Goldman Sachs Bank Europe S.E. and J.P. Morgan
- ISINs: XS2635185437 / US831594AH92
- Timing: Books open, today's business
From market source
GILTS: A Little Firmer To Start
Sep-12 07:20
In a similar start to SONIA, Gilt futures trade both sides of late Monday levels before settling a little higher post-labour market data.
- A light downtick in global equity benchmarks helps the bid.
- Futures sit +35, sticking with yesterday’s range, while the cash benchmarks are ~2bp richer in a parallel shift.
- SONIA futures re flat to +5.0, as the strip flattens through the blues.
- BoE-dated OIS sits little changed to ~2bp softer, with ~21.5bp of tightening showing for this month’s MPC, while terminal policy rate pricing moves back to ~5.65%.
- The mixed bag of domestic labour market data provided a ‘something for everyone’ feel, with most deeming the data as a bit of a non-event when it comes to furthering BoE discussions/debate.
- Initial signs of a loosening UK labour market remain in place.
- Domestically, monthly economic activity data is due tomorrow, but focus is now on next week’s CPI data.
- Long-dated I/L supply is due later this morning.
BUNDS: Edges to session high
Sep-12 07:18
- Bund breaks out of its 14 ticks range, testing session high.
- Resistance is still at 130.94, while the curve starts to lean flatter, as the short end, Euribor and Schatz lag.
