NATGAS: Germany’s INES Warns Gas Demand Cuts Needed Before Winter: Platts
An extremely cold winter could still pose a challenge fpr German gas supply, with demand curtailments necessary despite current healthy storage levels, German gas association INES said, cited by Platts.
- Storage could be completely emptied by the start of Feb. 2025 in case of a harsh winter, INES said.
- "We are not out of the woods yet. The security of gas supply that we were used to before the energy crisis has not yet been fully restored in Germany," Sebastian Heinermann, INES' managing Director said.
- If temperatures remain normal-warm, storage facilities could be emptied to a filing level of 35%-69% by the end of winter in April 2025.
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EURGBP TECHS: Impulsive Bear Wave Extends
- RES 4: 0.8621 High May 9 and a key short-term resistance
- RES 3: 0.8588 1.0% 10-dma envelope
- RES 2: 0.8541 High May 31
- RES 1: 0.8484/8519 Low May 29 / 20-day EMA
- PRICE: 0.8430 @ 17:12 BST Jun 11
- SUP 1: 0.8418 Intraday low
- SUP 2: 0.8408 Low Aug 24 2022
- SUP 3: 0.8388 Low Aug 17 2022
- SUP 4: 0.8366 2.236 proj of the Apr 23 - 30 - May 9 price swing
A bearish theme in EURGBP remains intact and this week’s move lower reinforces this condition. Monday’s sell-off and break of support at 0.8484, the May 29 low and bear trigger, confirms a resumption of the downtrend. Sights are on 0.8408 next, the Aug 24 ‘22 low. 0.8453, 76.4% of the Mar 7 ‘22 - Sep 26 ‘22 bull cycle has been breached, the break reinforces the bearish theme. Firm resistance is at 0.8519, the 20-day EMA.
US: FED Reverse Repo Operation
- Still over $400B, RRP usage slips to $410.449B from $416.481B prior; number of counterparties at 75. Compares to $327.066B on Monday, April 15 -- the lowest level since mid-May 2021.
NY Federal Reserve/MNI
US: House Rules Committee To Set Debate On Bellwether NDAA
The House Rules Committee has convened for a final markup of the National Defense Authorisation Act - the massive annual Pentagon spending bill which hikes defence spending by 1%. Should the committee complete work on the bill, it is expected to come to the floor for a final vote this week. Livestream of proceedings here.
- The bill was discharged from committee this week in an overwhelming 57-1 vote, but now faces a gruelling 1,382 amendments in Rules. The amendments cover a raft of conservative talking points on ‘culture war’ issues, which are certain to doom any prospect of bicameral agreement if they make the final House bill.
- Politico notes: “The bellwether of trouble ahead for GOP leaders here is amendments. Because the minority party doesn’t typically help a bill get to the floor, Johnson will need near-unanimity from his side.”
- The NDAA is also likely to kickstart another set of confrontations between conservative and moderate Republican over spending. Punchbowl News notes: "Sen. Roger Wicker of Mississippi, the [Senate Armed Forces Committee's] top Republican, is making a huge push this year to boost the annual defense bill total to an unprecedented $1 trillion authorization. The Senate committee counts several Democratic hawks as members, so it’s not out of the question that this could get approved."
