EM LATAM CREDIT: Brazil: Free from Bird Flu - Neutral

• ESM5 has hit highs of 5986.75 to push above Friday’s high of 5977.50 seen an hour ahead of the Moody’s US downgrade, via an overnight low of 5892.75.
• Next up is the round 6000 after which lies 6057.00 (Mar 3 high). Support at 5837.25 (Mar 25 high) wasn’t troubled overnight.
• Within the S&P 500, health care (+0.7%, led by UnitedHealth +7.4%), consumer staples (+0.4%) and materials (+0.3%) lead.
• Within consumer staples, Walmart has pared losses to -0.1% after an intraday recovery of 2.5%. Trump said Saturday: “Walmart should STOP trying to blame Tariffs as the reason for raising prices throughout the chain” and that it should "EAT THE TARIFFS", adding, "I'll be watching”.
• Losses are seen in energy (-1.5% despite WTI +0.8%) and consumer discretionary (-0.2%).
• Apple (-1.3%) and Tesla (-2.9%) weigh on IT and consumer discretionary. App Store legal discussions and Alphabet-linked revenues are in focus for the former.
• E-mini summary; S&P 500 (+0.1%), Nasdaq 100 (+0.1%), Dow Jones (+0.4%) and Russell 2000 (-0.6%)

• RES 4: 1.1625 1.500 proj of the Feb 28 - Mar 18 - 27 price swing
• RES 3: 1.1608 High Nov 9 2021
• RES 2: 1.1440/1573 High Apr 23 / 21 and the bull trigger
• RES 1: 1.1293/1381 High May 9 / High May 2 - 6  
• PRICE: 1.1280 @ 16:36 BST May 19
• SUP 1: 1.1096/65 50-day EMA and a pivot level / Low May 12 
• SUP 2: 1.1026 38.2% retracement of the Feb 3 - Apr 21 bull cycle 
• SUP 3: 1.0943 Low Apr 10    
• SUP 4: 1.0857 50.0% retracement of the Feb 3 - Apr 21 bull cycle

EURUSD has started the week on a bullish note. The pair remains above last week’s low and recent weakness appears corrective. A key support at the 50-day EMA, at 1.1096, is intact. A clean break of this average would undermine the uptrend. Key trend signals continue to highlight an uptrend and, a key resistance to watch is 1.1381, the May 2 - 6 high. Clearance of this level would signal the end of the correction and highlight a bullish break. 

Monday's Europe rates/bond options flow included:

• OEM5 116.00/117.75/117.25/118.75 put condor vs. 120.00/121.50 call spread, paper sells the put condor, buys the call spread for 32 on 13.5K.
• RXN5 132.00/133.50 call spread paper paid 20 on 3K
• SFIM5 95.90/96.00/96.10 call fly, paper pays 1 for 5k
• SFIU5 96.15/96.35/96.55 call fly paper paid 2.75 on 5K
• SFIU5 96.00/96.10 call spread sold at 5 in 8k
• SFIZ5 96.20/96.30 call spread vs. SFIZ5 95.75 puts, paper bought the call spread to sell the puts, paying 0.5 on 4K.