ARGENTINA: November Economic Activity Due, Consumer Confidence

Jan-23 12:27
  • Economic activity figures for November will be released at 1900GMT(1400ET), with analysts expecting the economy to have grown by another 0.4% m/m, after a 0.6% gain in October. In annual terms, growth is seen improving marginally to -0.5% y/y, from -0.7%. Separately, January consumer confidence figures are also due today. In December, confidence rose to its highest level in 13 months.
    • Nov. Economic Activity Index YoY, est. -0.5%, prior -0.7%
    • Nov. Economic Activity Index MoM est. 0.4%, prior 0.6%
  • Meanwhile, President Milei remains at the World Economic Forum in Davos today, where he has delivered a speech. In an interview there yesterday, he said that Argentina’s capital controls could be lifted more quickly, if the government secures new funding amid ongoing talks with IMF staff this week on a new loan programme. Milei added that his administration could tap capital markets, right after lifting the controls.

Historical bullets

US TSY OPTIONS: BLOCK: Jan'25 10Y Puts

Dec-24 12:21
  • 6,000 TYF5 108.5 puts, 13 ref 108-15 at 0703:22ET.

US 10YR FUTURE TECHS: (H5) Trend Needle Points South

Dec-24 12:02
  • RES 4: 112-02   Low Oct 14
  • RES 3: 111-20+ High 6 and the bull trigger   
  • RES 2: 110-28   50-day EMA  
  • RES 1: 110-03+ 20-day EMA
  • PRICE:‌‌ 108-23 @ 11:59 GMT Dec 24
  • SUP 1: 108-13+ Low Dec 24
  • SUP 2: 108-12+ 1.382 proj of the Oct 1 - 14 - 16 price swing
  • SUP 3: 108-00   1.500 proj of the Oct 1 - 14 - 16 price swing   
  • SUP 4: 107-19+ 1.618 proj of the Oct 1 - 14 - 16 price swing

The trend condition in Treasury futures remains bearish, confirmed by the return lower on December 24th. For now, short-term gains are considered corrective. Last week’s sell-off reinforces the current bear cycle. The contract has traded through key short-term support and the bear trigger at 109-02+, the Nov 15 low. The breach confirms a resumption of the downtrend and opens 108+12+, a Fibonacci projection. On the upside, initial firm resistance is at 110-03+, the 20-day EMA.       

LOOK AHEAD: Tuesday Data Calendar: Regional Fed Mfg, Tsy 2Y FRN & 5Y Note Sales

Dec-24 12:01
  • US Data/Speaker Calendar (prior, estimate)
  • Dec-24 0830 Philadelphia Fed Non-Manufacturing Activity (-5.9, --)
  • Dec-24 1000 Richmond Fed Mfg Index (-14, -10)
  • Dec-24 1000 Richmond Fed Business Conditions (10, --)
  • Dec-24 1130 US Tsy $28B 2Y FRN & $70B 5Y Note auctions