MEXICO: Economy Minister Ebrard Optimistic Ahead Of US Trade Talks
Oct-16 11:09
- Economy Minister Marcelo Ebrard said during a Senate hearing yesterday that Mexico is better positioned than any other country on trade issues with the US. Despite the adverse trade environment, he noted that Mexican exports and inward FDI have continued to grow, with over 1,700 investment projects currently registered in the country, totalling $293bn.
- His comments come ahead of a meeting he will hold in Washington today to discuss cuts in tariffs for heavy trucks parts exported to the US. Going forward, President Sheinbaum has said that she expects Mexico to continue to receive trade advantages due to its relationship with the US and President Trump.
- Ahead of the talks, USDMXN is trading moderately lower, with the pair edging down to a fresh weekly low at 18.4145 in recent trade. With a downtrend still in place, scope is seen for a move towards 18.1837, the 61.8% retracement of the Apr 9 ‘24 - Feb 3 bull leg. On the upside, resistance to watch is the 50-day EMA, at 18.5347, which has been pierced.
- On the data front, ANTAD same-store sales for September are due in the coming days, potentially today. Meanwhile, a forum on EU-Mexico relations will kick off from 1600BST(1100ET). In Congress, the Lower House is expected to discuss the income section of the 2026 budget.
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EURIBOR OPTIONS: Mid Curve spread trades for more
Sep-16 11:09
2RX5 97.6875/97.8125cs vs 3RX5 97.5625/97.6875cs, bought the 2yr for 1.75 and 2 in 18k total.
OUTLOOK: Price Signal Summary - Gold Bulls Still In Charge
Sep-16 10:58
- On the commodity front, Gold remains in a clear bull cycle and has started the week on a firmer note - yesterday the metal traded to a fresh all-time high, once again. The break higher confirms a resumption of the primary uptrend and an extension of the sequence of higher highs and higher lows. The next objective is the $3700.00 handle and $3705.2, a 1.382 projection of the May 15 - Jun 16 - 30 price swing. Initial firm support lies at $3532.8, the 20-day EMA.
- In the oil space, the trend condition in WTI futures is unchanged - a bear cycle remains intact and short-term gains are considered corrective. The pullback from the Sep 2 high highlights a possible recent reversal and the end of a corrective phase between Aug 13 - Sep 2. Initial resistance to watch is $66.03, the Sep 2 high. Key short-term resistance has been defined at $69.36, the Jul 30 high. A stronger resumption of weakness would open $57.71, the May 30 low.
US 10YR FUTURE TECHS: (Z5) Bullish Trend Sequence Intact
Sep-16 10:52
- RES 4: 114-10 High Apr 7 (cont.)
- RES 3: 114-10 1.0% 10-dma envelope / High Apr 7 (cont.)
- RES 2: 114-00 Round number resistance
- RES 1: 113-29 High Sep 5
- PRICE: 113-13+ @ 11:41 BST Sep 16
- SUP 1: 112-25+ 20-day EMA
- SUP 2: 112-04 50-day EMA
- SUP 3: 111-13+ Low Aug 18 and a key support
- SUP 4: 110-25 Low Aug 1
Treasury futures rallied to a fresh cycle high last Thursday, strengthening current bullish conditions. Note that the recent impulsive rally highlights an acceleration of the uptrend. Also, moving average studies are in a bull-mode position, highlighting a dominant uptrend. This suggests scope for an extension through 114-00 next and a test of 114-10, the Apr 7 high (cont). Initial firm support to watch is 112-25+, the 20-day EMA.
