EUROZONE ISSUANCE: EGB Supply
Belgium looks to hold an ORI auction today while Germany, Spain and France have come to the market already this week. We pencil in gross nominal issuance of E17.8bln, down from E24.0bln last week.
- Today, Belgium will hold an ORI operation for up to E500mln. On offer will be the 3.00% Jun-34 OLO (ISIN: BE0000333428) alongside the 2.15% Jun-66 OLO (ISIN: BE0000340498).
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EUROSTOXX50 TECHS: (U3) Bullish Trend Structure
- RES 4: 4501.60 1.618 proj of the May 31 - Jun 5 - 7 price swing
- RES 3: 4487.00 1.50 proj of the May 31 - Jun 5 - 7 price swing
- RES 2: 4472.40 1.382 proj of the May 31 - Jun 5 - 7 price swing
- RES 1: 4448.00 High Jan 2008 (cont)
- PRICE: 4430.00 @ 06:41 BST Jul 4
- SUP 1: 4368.30/4337.70 20- and 50-day EMA values
- SUP 2: 4262.00 Low Jun 26
- SUP 3: 4241.00 Low May 31 and the bear trigger
- SUP 4: 4200.00 Round number support
The Eurostoxx 50 futures uptrend remains intact and the latest pullback is considered corrective. Price has traded through resistance at 4438.00, the Jun 16 high and a bull trigger. The break confirms a resumption of the primary uptrend and paves the way for gains towards 4472.40, a Fibonacci projection. Initial key support is seen at 4368.30, the 20-day EMA. A pullback would be considered corrective.
EURJPY TECHS: Holding On To Its Recent Gains
- RES 4: 160.27 2.0% 10-dma envelope
- RES 3: 159.92 2.236 proj of the May 11 - 29 - 31 price swing
- RES 2: 158.72 2.00 proj of the May 11 - 29 - 31 price swing
- RES 1: 158.00 High Jun 28
- PRICE: 157.33 @ 06:51 BST Jul 5
- SUP 1: 155.09/06 20-day EMA / Low Jun 23
- SUP 2: 154.05 Low Jun 20
- SUP 3: 153.09 Low Jun 16
- SUP 4: 151.89 50-day EMA
EURJPY maintains a bullish tone as the cross consolidates at its recent highs. Recent gains reinforce a bullish theme and maintain the price sequence of higher highs and higher lows. Note that moving average studies are in a bull mode position too, highlighting positive market sentiment. The focus is on 158.72, a Fibonacci projection. Initial key support is at 155.06, the Jun 23 low.
EUROZONE ISSUANCE: EGB Supply
Latvia, Germany, Spain and France all still look to issue in the week ahead while the EFSF, Austria and Germany have already issued. We pencil in gross nominal issuance of E25.2ln, slightly higher than the E24.4bln last week.
- Latvia has released a mandate for a new 10-year benchmark syndication to be held in the near future. We look for a transaction today with a similar E750mln size to the 5-year transaction held in January in a E0.5bln-E1.0bln range. Latvia’s recently-updated investor presentation looks for a total of E1.7bln to be sold in H2 – the same total raised in H1.
- Germany will return to the market today to hold a E1bln auction for the 2.30% Feb-33 Green Bund (ISIN: DE000BU3Z005).
