SOUTH AFRICA: Panel Finds Ramaphosa May Have Violated Constitution, Case For Impeachment

Investment-grade corporate credit risk levels bounced from Fri's mid-Sep levels Monday, modest unwinds ahead of Wed's FOMC policy annc.

• Investment grade risk measured by Markit's CDXIG5 index is currently +2.286 at 89.811; CDXHY5 high yield index at 99.312 (-0.667).
• Outperforming credit sectors (tighter or least wide): Communications (-1.3) followed by Materials (-1.0) and Subordinated Financials (-0.8)
• Lagging sectors (wider or least narrow): Sr Financials (-0.4), followed by Industrials and Consumer Discretionary both -0.05.

US State Department Spokesperson Ned Price is shortly due to deliver a press conference from the Department of State.

• Livestream: https://www.state.gov/todays-briefing-schedule/
• Price is expected to take questions on the US response to Russia's decision to withdraw from the Black Sea grain corridor initiative.
• Secretary of State Antony Blinken said in a statement over the weekend: “Any act by Russia to disrupt these critical grain exports is essentially a statement that people and families around the world should pay more for food or go hungry. In suspending this arrangement, Russia is again weaponizing food in the war it started, directly impacting low- and middle-income countries and global food prices, and exacerbating already dire humanitarian crises and food insecurity.”

• RES 4: 1.0327 High Aug 12
• RES 3: 1.0273 1.382 proj of the Sep 28 - Oct 4 - 13 price swing
• RES 2: 1.0198 High Sep 12 and a key resistance
• RES 1: 1.0094 High Oct 27
• PRICE: 0.9982 @ 16:08 BST Oct 31
• SUP 1: 0.9925 50-day EMA
• SUP 2: 0.9839 Former channel resistance-now-support
• SUP 3: 0.9807 Low Oct 24
• SUP 4: 0.9705 Low Oct 21

EURUSD trend conditions remain bullish despite the pullback to begin this week. The recent key technical development was the break of the top of the bear channel drawn from the Feb 10 high. The channel breakout highlights a stronger reversal and note that the pair has cleared the 20- and 50-day EMAs. The focus is on 1.0198 next, the Sep 12 high. The support to watch is 0.9839, the former bear channel resistance.