EM LATAM CREDIT: LATAM Credit Market Wrap
Jun-25 21:23
Source: Bloomberg Finance L.P. Measure Level DoD 5yr UST 3.85% -2bp 10yr UST 4.29% -1bp 5s-10s UST...
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ASIA: Coming Up In Tuesday's Asia Pac Session
May-26 21:08
| 0001BST | 0701HKT | 0901AEST | UK May BRC Shop Price Index |
| 0050BST | 0750HKT | 0950AEST | Japan Apr PPI Services |
| 0200BST | 0900HKT | 1100AEST | Australia 2034 Bond Sale |
| 0230BST | 0930HKT | 1130AEST | China Apr Industrial Profits |
| 0500BST | 1200HKT | 1400AEST | EU27 Apr New Car Registrations |
COMMODITIES: Crude Steady As Reversal Signals Remain In Play, Gold Edges Lower
May-26 17:41
- Crude erased earlier gains to be little changed on the day, as more optimism towards US-Iran negotiations and an expected OPEC+ supply hike from July offset support from a delay in US tariffs on EU imports.
- WTI Jul 25 is broadly unchanged at $61.6/bbl.
- OPEC+’s seemingly hard-line approach to punishing its overproducing members risks plunging crude into a full-blown price war, Bloomberg said.
- For WTI futures, the recovery since Apr 9 appears corrective. The medium-term bearish technical theme remains intact, with key support and the bear trigger at that Apr 9 low, at $54.33.
- For bulls, key resistance to watch is $62.66, the 50-day EMA, a clear break of which would open $65.82, the Apr 4 high.
- Meanwhile, spot gold has fallen by 0.5% to $3,342/oz, leaving the yellow metal just below Friday’s two-week high of $3,365.9.
- Amid some signs of progress in US trade negotiations, Bloomberg reports that physically backed gold ETF’s have seen five straight weeks of outflows since peaking at the highest in more than a year in mid-April.
- Medium-term trend signals for gold remain bullish, however, with moving average studies in a bull-mode position, highlighting a dominant uptrend.
- A continuation higher would open $3,435.6 next, the May 7 high. Key support and the bear trigger has been defined at $3,121.0, the May 15 low.
FOREX: USD Set To Finish Off Of Worst Levels
May-26 15:04
The USD has underperformed many of its G10 FX peers for much of the day, with ongoing policy uncertainty continuing to provide headwinds for the greenback after President Trump delayed the timeline for the imposition of 50% tariffs on the EU following a conversation with EC President Von Der Leyen.
- The BBDXY registered a fresh ’25 low, piercing the Dec ’23 low in the process. Bears will look to force a break of the ’23 closing low (1,200.41) next.
- A reminder that liquidity was thinned by the U.S. & UK public holidays.
- EUR/USD extended the recent bullish move, trading as high as 1.1419 before fading back to 1.1380. Next resistance of note seen at the 76.4% retracement of the Apr 21 - May 12 bear leg (1.1453).
- GBP/USD topped out at 1.3593 before a pullback to 1.3560. The 1.382 projection of the Feb 28 - Apr 3 - 7 price swing (1.3605) presents the next upside area of note.
- USD/JPY has recovered from the lowest levels registered in May (142.23 printed in Tokyo trade), with the wider risk reaction to the delay of the tariffs on the EU providing some counter. Spot last deals at 142.80 after reaching 143.08, with bears remaining in technical control. A move through today’s lows would expose the 76.4% retracement of the Apr 22 - May 12 bull leg (141.96). Bulls need to retake the 20-day EMA (144.66) to start turning the tide in their favour.
- Risk proxy FX (AUD, NZD, NOK & SEK) outperformed for much of the session on the U.S.-EU tariff relief but also faded from best levels against the USD.
- Note that AUD/USD cleared next resistance at 0.6515 before fading back to 0.6500.
- U.S. consumer confidence & durable goods data headlines on Tuesday, complimented by Fedspeak from Kashkari & Barkin and ECB speak from Villeroy & Nagel.
