UK DMO UPDATE: PGT announcement due at 7:30BST

• RES 4: $75.33 - High Feb 20 
• RES 3: $73.88 - High Apr 2 and a bull trigger
• RES 2: $70.08 - 76.4% retracement of the Apr 2 - 9 sell-off 
• RES 1: $68.00 - High Jun 10 
• PRICE: $66.88 @ 07:10 BST Jun 11
• SUP 1: $62.09/57.78 - Low May 30 / Low April 9 and the bear trigger
• SUP 2: $55.88 - 2.236 proj of the Feb 20 - Mar 5 - Apr 2 price swing
• SUP 3: $54.70 - 2.382 proj of the Feb 20 - Mar 5 - Apr 2 price swing
• SUP 4: $54.00 - Round number support

A bull cycle in Brent futures remains in play. The latest round of gains has resulted in a break of resistance at $65.45, the 50-day EMA. The continuation higher exposes $70.08, a Fibonacci retracement. It is still possible that the recovery since early May is a correction. Moving average studies are in a bear-mode position, highlighting a dominant medium-term downtrend. Support to watch lies at $62.09, the May 30 low. A break would be bearish.

• As to be expected, not too much change for the German Bund contract with the Street fully focused on the US CPI Today, the main Data release for the Week.
• While negotiations between the US and China on de escalation of the Trade War, with a preliminary plan to resolve issues of rare Earth shipments are still ongoing, a Federal appeal Court decided that Trump can continue enforcing his Global Tariffs for now, as such uncertainty in Trade Wars remain.
• Technically for Bund, the initial resistance of 131.00 is still holding for now, above the latter would open to 131.28, followed by 131.50.
• Small support moves up to 130.52, although most could look at 130.37, Yesterday's low, but the near term key level is still at the 2.60% mark in Yield, this equated circa 130.10s for the the past couple of sessions.
• There's only the ECB Wage tracker this Morning, but unlikely to move the needle, it is all about the US Inflation Today.
• SUPPLY: UK £4.25bn 2035 (equates to 36.5k Gilt) will weigh, Germany €3bn Bund (equates to only 24k Bund) should have no real impact, Portugal 10s, 30s (too small, won't impact Bund at least). US sells $39bn of 10yr Reopening.
• SPEAKERS: ECB Makhlouf, Cipollone, but with the continued uncertainty in Tariff Wars don't expect anything too new.

• RES 4: 122.35 2.500 proj of the May 14 - 20 - 21 price swing
• RES 3: 122.00 Round number resistance
• RES 2: 121.65 2.000 proj of the May 14 - 20 - 21 price swing
• RES 1: 121.37 High Jun 9 
• PRICE: 121.19 @ Close Jun 10 
• SUP 1: 120.24 20-day EMA      
• SUP 2: 119.48 Low May 26 
• SUP 3: 118.87 Low May 21  
• SUP 4: 118.51 Low May 14 and key support 

A bullish condition in BTP futures remains intact and Monday’s fresh cycle high reinforces current conditions. Resistance and a bull trigger at 119.70, the Apr 24 high, has been cleared. This confirms a resumption of the uptrend and opens 121.65 next, a Fibonacci projection. Key support to watch lies at 118.51, the May 14 low. A clear break of this level would highlight a reversal. First support lies at 120.24 the 20-day EMA.