EGBS: Bid Extends
Jul-16 13:49
The squeeze higher in EGBS continues, with a ~1.5K lot block buy in OAT futures underpinning in recent trade.
- The pullback from UK CPI-driven lows in gilts, feedthrough from U.S. PPI and weakness in crude oil have also factored into the recovery that has been in play since the middle of the London morning.
- Bund futures have breached their early London high but remain within yesterday’s range.
- The technical setup in the contract remains bearish, with the 20-day EMA (130.01) providing first resistance.
- German yields 2.5-3.5bp lower, 20-Year zone outperforms on the curve.
- EGB spreads to Bunds within 1bp of yesterday’s close, marginal outperformance for BTPs. BTP/Bund spread moves back to ~85bp.
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EQUITIES: US Program Buyer on the Open
Jun-16 13:43
- Program buyer on the Cash Open, 1499 names, the most since 27th May.
- Next Immediate resistance in SPX comes at 6059.40, last Week's high, and also the best printed level since February, the Index is now trading at 6021.42.
USDCAD TECHS: Southbound
Jun-16 13:41
- RES 4: 1.4200 Round number resistance
- RES 3: 1.4111 High Apr 4
- RES 2: 1.3861/1.4016 50-day EMA / High May 12 and 13
- RES 1: 1.3732 20-day EMA
- PRICE: 1.3542 @ 14:41 BST Jun 16
- SUP 1: 1.3535 1.0% 10-dma envelope
- SUP 2: 1.3503 1.618 proj of the Feb 3 - 14 - Mar 4 price swing
- SUP 3: 1.3473 Low Oct 2 2024
- SUP 4: 1.3410 1.764 proj of the Feb 3 - 14 - Mar 4 price swing
The trend needle in USDCAD continues to point south and fresh cycle lows last week and again today, reinforce a bearish theme. Support at 1.3686, the May 26 low and a bear trigger, has been cleared, confirming a resumption of the downtrend. This maintains the price sequence of lower lows and lower highs. Sights are on 1.3535 next, envelope-based support, and 1.3503, a Fibonacci projection.Resistance at the 20-day EMA is at 1.3732.
SONIA: Ratio Call Spread vs Put
Jun-16 13:36
0NU5 96.90/97.40cs 1x1.25 vs 96.10p, bought the cs for 0.5625 in 10k.
