POWER: "*FRENCH POWER FOR AUG. 16 SETTLES AT EU 47.26 /MWH: EPEX AUCTION"-bbg

Awaiting results from Bank of America in around 10 minutes times - continuing the theme of big bank earnings that should dominate this week. Highlights today include:

• 1145BST/0645ET: Bank of America
• 1230BST/0730ET: Morgan Stanley, Goldman Sachs
• Pre-Market: Prologis, Progressive Corp
• After-Market: United Airlines

Our full schedule including timings, EPS and revenue estimates here: https://media.marketnews.com/MNIUSEARNINGS_110725_c282a28044.pdf

• In FX, a corrective cycle in EURUSD remains in play and the pair traded lower Tuesday. Support at the 20-day EMA, at 1.1655, has been cleared. This shifts the focus to the 50-day EMA, at 1.1505. A clear break of the average is required to highlight a stronger reversal. For now, the move down appears corrective and trend signals continue to highlight a dominant uptrend. A resumption of gains would open 1.1829, the Jul 1 high and a bull trigger.
• A short-term bear cycle in GBPUSD remains in place and this week’s move down reinforces current bearish conditions. The pair has breached both 20- and 50-day EMAs. Yesterday’s move down resulted in a break of trendline support at 1.3440. The trendline is drawn from the Jan 13 low and the breach strengthens a bearish threat, exposing 1.3371 initially, the Jun 23 low. Initial firm resistance to watch is 1.3555, the 20-day EMA.
• A short-term bull cycle in USDJPY remains firmly in place and this week’s gains reinforce current conditions. The latest rally has resulted in a breach of resistance at 148.03, the Jun 23 high, and a move through key resistance at 148.65, the May 12 high. Clearance of both levels strengthens the bull theme and opens 149.38, 50.0% of the Jan 10 - Apr 22 bear leg. On the downside, support to watch is 145.44, the 50-day EMA.

OI data points to meaningful net short setting in the SOFR greens on Tuesday (in net pack terms), as the market reacted to CPI data and signals that tariff increases were feeding into some core goods prices.

• A mix of more modest net long cover and short setting was seen across the remainder of the strip.