COLOMBIA: Government Preparing Import Tariffs On Steel From China
Sep-26 11:21
- Finance Minister Bonilla said yesterday that the government is preparing a decree that will raise import tariffs on steel wire rods from China. The decree is expected to be signed once President Petro returns from his trip to New York and will be published in the coming days, Bonilla told W Radio.
- On the data front, the next release in the calendar is August unemployment, due next Monday. This will be followed by BanRep’s monetary policy meeting, which looks like being a close call as the board members are likely to debate once again whether to cut rates by 50bp or 75bp. A full MNI preview with analyst views will be published tomorrow.
- In other news, the governments of Colombia and Panama have said that they will build single, organised route through the jungle region between the two countries known as the Darien Gap. The route will be controlled by the authorities and it will aim to displace mafia-controlled human traffickers, who currently use several routes across the jungle. Last year, more than 500,000 migrants crossed the Darien Gap.
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OUTLOOK: Price Signal Summary - Bund Futures Trade Through The 20-Day EMA
Aug-27 11:20
- In the FI space, Bund futures have traded lower today resulting in a break of the 20-day EMA, at 134.16. Short-term weakness appears to be corrective and this is allowing the recent overbought condition to unwind. The next support to watch lies at 133.32, the 50-day EMA. A break of this average would highlight scope for a deeper retracement. For bulls, a reversal higher would refocus attention on 136.45, a Fibonacci retracement. First resistance is 135.17, the Aug 14 high.
- Gilt futures have traded lower today and this has resulted in a breach of support at 98.79, the Aug 12 low. The break lower highlights scope for a deeper retracement near-term and this opens 98.37, a Fibonacci projection. The trend condition remains up and the latest pullback appears to be a correction. A reversal higher would signal the end of the corrective hase. First key resistance to monitor is 99.85, Aug 22 high.
BONDS: Bund tests the August low
Aug-27 11:11
- Gilt on the follow is taking its cue from the price action in EGBs and is eyeing a test to the August low, this is situated at 99.20 in the September expiry.
- Although most investors will be looking at the December month, September is still the most active contract by ~80k lots in Gilt.
- The German Supply equated to 37.8k Bobl and the Italian supply equated to 23.2k short 2yr BTP, combined with a pretty packed day on the Issuance front has all helped weighing on Futures.
- The break below the figure in Bund and the 133.94 area, cleared very short term intraday longs.
SEK: SEB Point To SEK Buying Needs vs USD In August Month End
Aug-27 11:07
SEB’s month-end rebalancing model notes that typical Swedish portfolio managers will have a small need to buy SEK in August (0.1% share of portfolio), below the historical average of 0.3%.
- They note that the most pronounced selling need will be in USD (-0.2%).
- USDSEK bounced off pivot support around 10.1500 on Friday, though moving average studies continue to highlight a bearish technical backdrop for the pair.
- A breach of 10.1500 would open up 9.9100, the Dec 2023 low.
