US-CHINA: China Banks Buy Tsys On Boost In USD Deposits, Sources Say (RTRS)

• RES 4: $110.00 - Round number resistance 
• RES 3: $101.40 - 0.764 proj of the Dec 16 ‘25 - May 18 - Jul 2 swing
• RES 2: $99.12 - High May 18 and a bull trigger
• RES 1: $84.29/95.30 - 20-day EMA / High Jul 23 and key resistance
• PRICE: $79.05 @ 07:11 BST Aug 05
• SUP 1: $78.11 - Intraday low  
• SUP 2: $76.48 - 76.4% retracement of the Jul 2 - 23 bull leg   
• SUP 3: $70.67 - Low Jul 2 and the bear trigger
• SUP 4: $68.39 - 76.4% retrace of the Dec 16 ‘25 - May 18 bull leg

The current bear cycle in Brent futures - a correction - remains in play for now. The contract has breached the 50-day EMA and this signals scope for an extension towards $76.48, a Fibonacci retracement. A breach of this level would open $70.67, the Jul 2 low and a bear trigger. On the upside, a  reversal higher would refocus attention on key resistance at $95.30, the Jul 23 high.

Gilt futures trade off overnight highs but remain underpinned following the headlines surrounding the potential imminent reopening of the Strait of Hormuz over the last 24 hours.

• Contract last +22 at 87.84.
• Continuation higher would signal scope for an extension towards 88.48, a Fibonacci retracement level. On the other hand, a reversal lower would refocus attention on key support at 85.77, the Jul 23 low and bear trigger.
• Local news flow shows a polling bounce for Labour under new leader Bunrham, with the party leading Reform UK for the first time in over a year per the latest JL Partners survey (27% vs. 25%).
• Elsewhere, flexibility within the existing fiscal rules remains a focus, although this won’t remove the fiscal pressure evident in the UK, just provide some space around the edges.
• Final services and composite PMI data is due this morning, but expect more focus to be placed on cross-market inputs (headline flow surrounding Iran & U.S. data).

• The German Bund and broader Bond futures have extended onto Yesterday's gains after the US said that an interim deal to re open the strait could be imminent as per Qatar, Rubio and Bessent.
• That news provided a notable move in Yields, pushing the German 10yr Yield from a 3.209% high on Friday to what should be quoted just under 3.10% into Today's session.
• The US 20yr Yield got close to a 5.30% print on Friday and has fallen down to 5.1427% at present.
• After printing a 19yrs high, the US 30yr Yield has unwound 13bps in just 2 sessions, now at 5.1470%.
• Some will see the next resistance in Bund at 125.74, but seeing better at 125.77. Support moves up to 125.04.
• Today's Services PMIs are final readings for France, Germany, EU, UK and US. US ADP is also due, but the overall focus will be on the US ISM services later this afternoon.
• SUPPLY: Germany sells €500mln of 2029, 2035, 2053 respectively (shouldn't impact Futures).
• SPEAKERS: Fed Cook.