USD: Some downside continuation
Jun-24 09:31
- USD is on the mover, as Govies continue to fade the earlier rallies.
- At session low against the EUR, GBP, NOK, CAD, ILS, CHF, NZD, SEK, and towards the low vs AUD.
- Small resistance in EURUSD moves down to 1.0579.
Want to read more?
Find more articles and bullets on these widgets:
Historical bullets
BONDS: Looking ahead to the Fed Minutes
May-25 09:30
- By recent standards, core fixed income markets have been rather un-volatile this morning and has taken a bit of a breather following yesterday's big moves.
- Treasuries are up a little on the day while gilts and Bunds are a little lower.
- Data this morning has not been too market moving, nor have a slew of ECB speakers.
- Attention will turn later to US durable good and the FOMC Minutes.
- The Fed Minutes later will be watched for any further views on the terminal rates, the likelihood of any 75bp hikes and the triggers for slowdown to 25bp hikes.
- TY1 futures are up 0-6+ today at 120-18+ with 10y UST yields down -1.2bp at 2.741% and 2y yields down -1.6bp at 2.501%.
- Bund futures are down -0.03 today at 153.91 with 10y Bund yields down -2.2bp at 0.943% and Schatz yields down -1.3bp at 0.353%.
- Gilt futures are down -0.26 today at 118.86 with 10y yields down -0.4bp at 1.882% and 2y yields down -0.8bp at 1.431%.
EGB SYNDICATION: Finland 10y: Spread set
May-25 09:23
- Size: EUR 3bn (no-grow)
- Spread set at MS-15bps (guidance was MS-13 bps area)
- Maturity: 15 September 2032
- Settlement: 01 June 2022 (T+4)
- Bookrunners: BARC/BNPP/CITI/CACIB/NOMURA
- ISIN: FI4000523238
- Timing: Books to close at 10:55BST / 11:55CET
From market source
MARKET INSIGHT: Price Signal Summary - USDJPY Trades Through Pivot Support
May-25 09:22
- In the equity space, S&P E-Minis remain below key short-term resistance at 4099.00, May 9 high. The contract remains vulnerable following a fresh trend low last Friday. Attention is on 3801.97, 38.2% of the Mar ‘20 - Jan ‘22 bull leg (cont). 3807.50, Friday’s low is the bear trigger. A break of resistance at 4099.00 is required to signal a base. The primary trend direction in EUROSTOXX 50 futures is down. A corrective cycle is still in play however following the recovery from 3466.00, May 10 low. Price last week probed the 50-day EMA, today at 3723.80. A clear break of this average would improve a short-term bullish theme. On the downside, key support and the bear trigger is at 3466.00.
- In FX, EURUSD has this week cleared the 20-day EMA, and 1.0642, the May 5 high. An extension higher would signal scope for a climb towards 1.0840, the base of a bear channel drawn from the Feb 10 high. Initial support is at 1.0533, May 20 low. GBPUSD maintains a firmer short-term tone following this weeks climb above , 1.2525, May 19 high and the 20-day EMA at 1.2503. This opens 1.2638, the May 4 high and a key resistance. Initial firm support lies at 1.2438, May 20 low. USDJPY has traded through support at 126.95, Apr 27 low and an important short-term pivot level. The breach suggests scope for a continuation lower. Current weakness is still considered a correction though and is allowing a recent overbought trend reading to unwind. Attention is on the 50-day EMA, at 125.89.
- On the commodity front, Gold has traded above resistance at $1859.7, the 20-day EMA. This opens the 50-day EMA at $1884.5. The latest move higher is still considered corrective and the trend direction remains down. A resumption of bearish activity would refocus attention on last week’s $1787.0 low (May 16). In the Oil space, WTI futures maintain a firm tone. The contract last week breached resistance at $110.07, Mar 24 high. A resumption of gains would open $116.43, the Mar 7 trend high. Initial support is at $103.24, the May 19 low.
- In the FI space, Bund futures resistance is at $155.33 May 12 high. The trend direction remains down and an extension lower would open 150.49, the May 9 and the bear trigger. The broader trend condition in Gilts remains down. The contract has recently found resistance at 121.07, May 12 high. The bear trigger is unchanged at 116.87, May 9 low.
