GBP: In the red against the majors
May-05 06:34
- GBP is the early loser against the USD in G10, after unwinding some of the USD sell off post the US FOMC.
- Regardless, Cable trades right in the middle of yesterday's range at 1.2552 (1.2452/1.2638 range yesterday).
- Market participants have likely squared longs and positioning after the less hawkish Fed yesterday.
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What to watch
Apr-05 06:23
- Final PMI prints dominate the calendar for the day ahead with the most significant the ISM services print in the US. Despite being the talking points, given most of the prints are final they are unlikely to be hugely market moving.
- Outside of this we have a busy day of supply across Europe with the EU holding a 20-year Green syndication, UK selling 5-year gilts, Austria selling 10/25-year RAGBs and Germany selling linkers. In addition we have bill sales from Spain, Belgium and the ESM.
- The big mover overnight was AUD after the RBA dropped its reference to patient, in a hawkish post-meeting statement, and instead focused on upside risks to inflation. AUDUSD rose from around 0.7540 ahead of the decision to hit a high of 0.7618 in early European trading, its highest level since June 2021, finally breaking above the October 2021 resistance.
US TSY OPTIONS: FVM2 113.25 Puts Blocked
Apr-05 06:07
{US} US TLatest block trade lodged at 06:51:07 London/01:51:07 NY:
- FVM2 113.25 puts 5.0K lot blocked at 0-34+, looks like a buyer. Delta -37%.
USDCAD TECHS: Trend Condition Remains Bearish
Apr-05 06:06
- RES 4: 1.2778 High Mar 16
- RES 3: 1.2699 High Mar 17
- RES 2: 1.2642 50-day EMA
- RES 1: 1.2583/93 20-day EMA / High Mar 28
- PRICE: 1.2472 @ 07:05 BST Apr 5
- SUP 1: 1.2430 Low Mar 30 and the bear trigger
- SUP 2: 1.2389 1.0% 10-dma envelope
- SUP 3: 1.2387 Low Nov 10 2021
- SUP 4: 1.2328 Low Oct 29 2021
USDCAD is trading closer to its recent lows. The pair has recently traded below 1.2451 - the Jan 19 low. This has reinforced bearish conditions and extends the move lower triggered by the recent break of 1.2552, 76.4% of the Jan 19 - Feb 24 rally. The break lower opens 1.2387 initially ahead of 1.2328. On the upside, initial firm resistance is seen at 1.2583, the 20-day EMA. A break of this average would ease bearish pressure.
