UK: BOE: Instant Answer questions for May meeting

Monday's Europe rates/bond options flow included:

• RXM5 126/125/124 put fly, sold out at 3-4 in 10k
• ERK5 98.125/98.25 call spread, bought for 1.25 in 15k
• ERM5 98.125/98.25 call spread has traded in 30k at 1.25. Paper has both bought and sold this structure
• ERZ5 98.0625/98.25 call spread 14.8K given at 10.25
• ERZ5 99.25/99.75 call spread, now trading at 2.25. 20k sold all day at 2.5  down to 2.25
• 0RK5 98.00/98.125 cs, sold at 9 in 52k
• SFIZ5 97.50/98.00 call spread, bought for 3.25-3.5 in 10k
   

• US TSY 14D AUCTION: HIGH RATE 4.300%; 8.37% AT HIGH
• US TSY 14D BILL AUCTION: DEALERS TAKE 57.50% OF COMPETITIVES
• US TSY 14D BILL AUCTION: DIRECTS TAKE 6.01% OF COMPETITIVES
• US TSY 14D BILL AUCTION: INDIRECTS TAKE 36.49% OF COMPETITIVES
• US TSY 14D AUCTION: BID/COVER 2.65

• RES 4: 1.1276 High Jul 18 ‘23 
• RES 3: 1.1214 High Sep 25 2024 and a key resistance 
• RES 2: 1.1188 0.764 proj of the Feb 28 - Mar 18 - 27 price swing  
• RES 1: 1.1144 High Oct 1 2024 / High Apr 3    
• PRICE: 1.0914 @ 16:44 BST Apr 7
• SUP 1: 1.0882 Intraday low     
• SUP 2: 1.0824 20-day EMA     
• SUP 3: 1.0733 Low Mar 27 and a key short-term support     
• SUP 4: 1.0684 50-day EMA and a short-term pivot level

EURUSD has pulled back from last week’s high. The trend condition remains bullish and a move lower is considered corrective. Recent gains resulted in the break of key resistance at 1.0955, the Mar 18 high, confirming a resumption of the uptrend. It paves the way for a climb towards 1.1188 next, a Fibonacci projection. MA studies are in a bull-mode position highlighting a dominant uptrend. Initial firm support lies at 1.0824, the 20-day EMA.