BOE: STR Usage Rises To Fresh Record High; Focus On Saporta Next Week

• EURGBP has again found some small resistance at the trendline (see chart), Merz Falling short in First Round Of Chancellor Voting has dampened the EUR somewhat, and Cable edging back towards its earlier high is also providing some pressure into the EURGBP.
• The Immediate support is still at that retracement level of ~0.8481, printed a 0.8482 and 0.8480 last Week.

(Chart source: MNI/Bloomberg).

• The Swiss Franc prints on the bottom of the G10 leaderboard today following Schlegel commentary this morning highlighting it has appreciated 'really a lot', referring to the CHF April move which has seen its REER push through 2024 highs. Schlegel is usually not known for such pronounced commentary on Franc valuations. Domestic sight deposit data recently did not indicate material SNB FX intervention.
• Today's weakness follows yesterday's Swiss April CPI, which came in at 0.0% Y/Y, 0.2pp below consensus (and 0.3pp below the SNB's Q2 forecast). While volatile travel-related services did have a particularly negative impact this time, the overall deceleration did appear broad-based.
• At 0.8259, USDCHF continues to trade below the key 0.8333 resistance, the 2023 low and breakdown point. Initial support stands at the late April lows around 0.8200, before cycle lows at 0.8040.
• Goldman Sachs think "risks are skewed to further CHF appreciation vs both EUR and the Dollar, especially if a recession starts to look imminent".

• Date $MM Issuer (Priced *, Launch #)
• 05/06 $Benchmark Standard Chartered 6NC5 +165a, 6NC5 SOFR
• 05/06 $Benchmark Gold Fields 7Y +210a
• $13.8B Priced Monday