LOOK AHEAD: Eurozone Timeline of Key Events (Times GMT)

• RES 4: 0.8867 High Oct 12
• RES 3: 0.8829 High Nov 09 and the bull trigger
• RES 2: 0.8778 High Nov 16
• RES 1: 0.8660 50-day EMA
• PRICE: 0.8601 @ 06:16 GMT Dec 12
• SUP 1: 0.8547 Low Dec 1, 200-dma and bear trigger
• SUP 2: 0.8522 Low Aug 30
• SUP 3: 0.8471 Low Aug 28
• SUP 4: 0.8449 1.236 proj of the Oct 12 - 31 - Nov 9 price swing

EURGBP is trading just ahead of support at 0.8547, the 200-dma and Dec 1 low. Weakness through here would take the cross to its lowest levels since late August. This would also strengthen a bearish theme and pave the way for a move towards 0.8522 initially, the Aug 30 low. On the upside the 50-day EMA, at 0.8660, marks a key short-term resistance. A break would ease the bearish threat.

TYH3 deals unchanged on the day at 114-03, after ticking away from best levels, operating in a 0-09 range on sub-par volume of ~64k.

• Cash Tsys are dealing flat to 3.5bp richer with the long end of the curve leading the bid, resulting in bull flattening.
• The richening in Tsys has held in the Asian afternoon after the initial cheapening impulse gave way. Note that the early move cheaper saw 2- through 7-Year yields look through their Friday peaks on adjustments to Friday’s U.S. PPI print (TU-TY futures looked through their respective Friday bases), before the retrace from worst levels saw a move to firmest levels of the session.
• There hasn’t been much in the way of a headline driver, leaving regional participants to digest Friday/weekend news flow, and eye cross-market moves.
• Cross-asset, e-minis are little changed to a touch lower, while the major Asia-Pac equity indices are softer on the day, but operate off worst levels.
• U.S. Treasury Secretary Yellen told CBS that whilst there is a risk of recession it isn't something that will necessarily bring inflation down. She also noted that she thinks by year end 2023 we’ll see “much lower inflation.”
• Tuesday's Nov CPI print is moving into view and presents the final key input ahead of the Fed monetary policy decision, due Wednesday.