EM LATAM CREDIT: Peru: Withdrawals from Pensions - Neutral

"BESSENT: BIG COMPONENT OF THIS MONTH'S PPI NUMBERS WAS INVESTMENT SERVICES, WHICH MEANS MARKET WENT UP A LOT" - Reuters

• Following the last PPI release, we wrote: "Our proxy for core PCE contributions from typically important PPI categories sees them adding 0.12pps to M/M core PCE in July after 0.03pps in June (hardly revised from 0.02pp prior).
• It's dominated by portfolio management & investment advice adding 0.10pps, on the back of a 5.4% M/M increase after a near unrevised 1.94%. M/M."

• EUR/USD: Aug20 $1.1660-75(E1.3bln); Aug21 $1.1600(E1.3bln), $1.1700(E1.5bln), $1.1750(E1.9bln), $1.1800(E2.9bln)
• USD/JPY: Aug20 Y148.00-10($1.3bln); Aug21 Y145.95-00($1.2bln), Y146.70-80($1.7bln); Aug22 Y147.90($1.4bln)
• AUD/USD: Aug21 $0.6590-00(A$1.8bln)

• In the FI space, Bund futures are trading closer to their recent lows. The contract traded sharply lower Friday resulting in a breach of 128.84, the Jul 25 low and bear trigger. Note that the 129.00 handle marks the base of a broad range and a clear range breakout would strengthen a bearish threat. This would open 128.40 initially, the Apr 9 low. Strength above the 50-day EMA of 129.93, is required to signal a reversal. Resistance at the 20-day EMA is at 129.64.
• Gilt futures traded sharply lower last Friday and yesterday’s sell-off confirmed a bearish start to the week, strengthening current conditions. The contract has breached key short-term support and a bear trigger at 91.08, the Jul 18 low. This signals scope for an extension towards 90.11, the May 22 low. On the upside, resistance to watch is seen at 91.99, the 50-day EMA. Clearance of this average is required to highlight a potential reversal. First resistance is 91.32, Monday’s high.