EQUITIES: E-Minis Back To Flat
Some weakness around the European cash equity open and softer than expected flash services PMI data out of France sees the S&P 500 e-minis briefly into the red, with the early Asia-Pac gains related to U.S. President Biden flagging an agreement with House Speaker McCarthy re: avoiding a default (albeit with no overarching debt ceiling agreement forthcoming at this point) now more than unwound.
- Weakness in mainland Chinese equities wouldn’t have helped the broader risk tone overnight.
- Bulls failed to force a challenge of initial technical resistance in the S&P 500 e-mini (located at Friday’s high, 4,227.25).
- Debt ceiling rhetoric will be front and centre again today, with ongoing meetings relating to the matter slated as we near early June (the window that Treasury Sec Yellen has warned could see her department run out of cash).
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MNI: FED'S CIE INFLATION EXPECTATIONS INDEX EASED IN Q1 '23
- MNI: FED'S CIE INFLATION EXPECTATIONS INDEX EASED IN Q1 '23
- FED DATA: CIE INDEX DOWN 0.09PPT TO 2.22%, LOWEST SINCE Q2 '21
USDCAD TECHS: Tops Resistance At The 50-Day EMA
- RES 4: 1.3617 High Mar 29
- RES 3: 1.3582 50.0% retracement of the Mar 10 - Apr 14 bear leg
- RES 2: 1.3573 1.0% 10-dma envelope
- RES 1: 1.3563 High Apr 21
- PRICE: 1.3536 @ 16:42 BST Apr 21
- SUP 1: 1.3385/3302 Low Apr 19 / 14 and the bear trigger
- SUP 2: 1.3275 Low Feb 14
- SUP 3: 1.3262 Low Feb 2 and a key support
- SUP 4: 1.3226 Low Nov 15 2022
USDCAD maintains a firmer tone and the current correction remains intact. The pair has topped 1.3526 resistance - the 50-day EMA. A clear break of this hurdle would strengthen the current bull cycle and signal scope for a climb towards 1.3573, the 1.0% 10-dma envelope. For bears, a failure at the 50-day EMA would signal the end of the correction and attention would turn to the key support at 1.3302, the Apr 14 low.
MNI: TREASURY GENERAL ACCOUNT $280B APRIL 20 VS $265B PREV DAY
- MNI: TREASURY GENERAL ACCOUNT $280B APRIL 20 VS $265B PREV DAY
- TREASURY DATA: TGA TOTAL DEPOSITS $188B APRIL 20 VS $60B PREV
