EM CEEMEA CREDIT: First Abu Dhabi Bank: Book Building Update

• In FX, a bear mode in EURUSD remains in place. The recent breach of the 50-day EMA and a support at 1.1646, the Sep 25 low, exposes 1.1516, 76.4% retracement of the Aug 1 - Sep 17 bull leg. Note that moving average studies are in a bull-mode position. This continues to highlight a dominant medium-term uptrend, suggesting the move down is likely a correction - for now. First resistance is 1.1680, the 20-day EMA.
• A short-term bear condition in GBPUSD remains intact. The pair has breached a key short-term support at 1.3333, the Sep 3 low. The break signals scope for a deeper retracement. A clear break of 1.3280 (pierced), 76.4% of the Aug 1 - Sep 17 bull leg, would open key support at 1.3142, the Aug 1 low. Initial resistance to watch is unchanged at 1.3433, the 20-day EMA.
• A bullish trend condition in USDJPY remains intact and Friday’s pullback is considered corrective - for now. Note that the trend is overbought and a deeper retracement would allow this overbought set-up to unwind. The next important support lies at 149.72, the 20-day EMA. On the upside, clearance of last Friday’s 153.27 high, would resume the uptrend and open 154.39, the 76.4% retracement of the Jan 10 - Apr 22 bear leg.

• 3,000 SFRZ5 96.25/96.37 put spds, 3.75 ref 96.375 at 0632:32ET

OI data points to a mix of net long setting (TU & TY), short cover (FV), short setting (UXY &S US) and long cover (WN) as Tsy futures twist steepened in holiday-thinned trade on Monday.

• There was no real movement in net curve-wide DV01.