CHINA: PBOC Said to Support Foreign Investors to Access Onshore Repo Bond Market

Gov't spox Sophie Primas says that President Emmanuel Macron, in a recently-concluded meeting with the Council of Minsiters, did not discuss the option of dissolving parliament should the Bayrou gov't be defeated in a confidence motion. As MNI noted earlier, recent polling shows a clear majority of respondents in favour of snap legislative elections if PM Francois Bayrou's gov't is ousted on 8 September (see 'FRANCE: Poll-63% Back Dissolving National Assembly & Snap Elections', 08:36BST)

• Primas said there was "there was no [discussion] of a post-September 8 scenario", that Macron offered his "total support" to Bayrou's "approach" in seeking parliamentary approval for spending plans.
• Spox says the gov't will "continue to push forward all of our projects, very important issues that were coming up at the start of the [parliamentary calendar] We must take back the reins of our destiny, (...) this is a strong message to the financial markets,"
• The cabinet also confirmed that municipal elections will take place on 15 and 22 March 2026. In the event that the Bayrou gov't somehow avoids defeat/Macron can put together another gov't, these will be the next major set of nationwide elections to take place in France. 

• In FX, the trend set-up in EURUSD remains bullish and short-term weakness is for now considered corrective. However, the pair is trading lower today and has pierced key support at the 50-day EMA, at 1.1599. A clear break of the average would signal scope for a deeper retracement and potentially expose key M/T support at 1.1392, the Aug 1 low. For bulls, a resumption of gains would open key resistance and the bull trigger at 1.1829, the Jul 1 high.
• A rally on Aug 22 in GBPUSD continues to signal the end of the recent corrective phase - last Friday’s reversal pattern is a bullish engulfing candle. An extension higher would open the short-term bull trigger at 1.3595, the Aug 14 high. Clearance of this level would signal scope for a climb towards 1.3636, the 76.4% retracement of the bear leg between Jul 1 and Aug 1. Key short-term support has been defined at 1.3391, the Aug 22 low.
• USDJPY is trading inside a range and a bear threat remains present. The short-term bear trigger has been defined at 146.21, the Aug 14 low. Clearance of this level would resume a downtrend and pave the way for an extension towards 145.40, a Fibonacci retracement. For bulls, a resumption of gains would instead open 149.12, 61.8% of the Aug 1 - 14 bear leg. Key resistance is far off at 150.92, the Aug 1 high.

SFIZ5 96.10/96.25/96.40/96.55c condor, sold at 4.5 in 11k total now (closing).