EU CREDIT UPDATE: Rating Actions: HY

• A very limited 6 ticks dip lower in Bund despite the very strong ADP release, which was also revised higher.
• There's very little in terms of correlation with NFP, and as mentioned more focus will be ion the US ISM today.

• RES 4: 1.2667 High Dec 19
• RES 3: 1.2610 38.2% retracement of the Sep 26 ‘24 - Jan 13 swing   
• RES 2: 1.2576 High Jan 7 
• RES 1: 1.2550 Intraday high 
• PRICE: 1.2532 @ 13:22 GMT Feb 5
• SUP 1: 1.2411/2249 20-day EMA / Low Jan 3   
• SUP 2: 1.2161 Low Jan 17 / 20
• SUP 3: 1.2100 Low Jan 10 and the bear trigger 
• SUP 4: 1.2087 0.764 proj of the Sep 26 - Nov 22 - Dec 6 price swing    

Resistance levels in GBPUSD at 1.2503, the 50-day EMA, and 1.2523, the Jan 27 high, have been cleared. This cancels a recent bearish threat and instead reinstates the bull cycle that started Jan 13. The break higher paves the way for a climb towards 1.2610, a Fibonacci retracement. Key short-term support has been defined at 1.2249, the Jan 3 low. A break of this level would highlight a reversal.

• The US Postal Service suspended inbound package shipments from China and Hong Kong as US President Donald Trump’s 10% across-the-board tariffs kicked in.
• Trump said he is in “no rush” to speak with Chinese President Xi Jinping but the pair could speak as soon as today.
• Peter Navarro, a key Trump trade strategist, said tariffs on China would proceed in a "measured way."
• The Senate is on track to confirm Scott Turner to lead the Department of Housing and Urban Development and Russell Vought to lead the Office of Management and Budget.
• House Speaker Mike Johnson (R-LA) will deliver a press conference this morning amid concerns the Senate could outflank the House on budget reconciliation strategy.
• Dozens of Senate Republicans will travel to Mar-a-Lago on Friday to advocate for Trump’s backing of their two-bill reconciliation plan.
• Trump, speaking alongside Israeli Prime Minister Benjamin Netanyahu yesterday, appeared to explode decades of US Middle East policy and contradict his own ‘America First’ foreign policy principle by declaring the US will lead the reconstruction of the Gaza Strip.
• Trump signed an executive order returning administration policy back to ‘maximum pressure” on Iran. He indicated this morning that he would prefer a "Verified Nuclear Peace Agreement" to prevent Iran from acquiring a nuclear weapon.
• Poll of the Day: Every Trump nominee has close to a 100% implied probability of confirmation.  

Full article: US DAILY BRIEF