MALAYSIA: BNM Governor Sees Cut as Pre-Emptive, Looks Ahead to Forecast Revision

TYQ5 113.00 calls paper paid 0-12 on 5K, representing another round of upside flow after the buying of the TYQ5 112.50 calls we flagged previously. 

• Some early activity in the FX CME roll, nothing huge as of Yet, but the pace will pick up into Friday, should be all but done by then, Expiry is next Monday.
• The EURUSD trades mostly on legs, just bought for 0.00702 in 4.8k.
• The spread has traded in just 4.5k outright total, and the record high for this EURM5/U5 spread printed in May is at 0.00716.

• In the equity space, the trend condition in S&P E-Minis is unchanged, it remains bullish and the contract traded to a fresh cycle high last week. The recent break of 5993.50, the May 20 high and a bull trigger, highlights a resumption of the uptrend and maintains a price sequence of higher highs and higher lows. A continuation would open 6057.00 next, the Mar 3 high. Key support lies at 5789.75, the 50-day EMA.
• The trend cycle in EUROSTOXX 50 futures remains bullish and the contract is trading closer to its recent highs. Moving average studies are in a bull-mode position, highlighting a clear dominant uptrend. Sights are on 5516.00, the Mar 3 high and the key bull trigger. Clearance of this level would strengthen a bull theme. Key support to watch lies at 5280.33, the 50-day EMA. A clear break of this average would signal a possible reversal.