LNG: US LNG Cargo Zigzags on Course to Europe

"*Issue Size of Portugal's June 2054 Bond Tap Is EUR1.5B" DJ

• In line with MNI's E1-2bln expected range.

"*Issue Size of Portugal's New October 2033 Bond Is EUR3.5B" DJ

• Slightly above MNI's E3bln expectation.

Book sizes:

"*Books for Portugal's June 2054 Bond Tap Closed in Excess of EUR35B" DJ

*Books for Portugal's New October 2033 Bond Closed in Excess of EUR46B" DJ

• Monday saw a punchy reversal higher for EURCAD, rising around 0.75% on the session. The cross has been in focus in recent weeks, appreciating to the highest level since 2009 amid broader Euro optimism. The cross currently stands just 50 pips from those cycle highs at 1.6360, printed last Wednesday.
• We would highlight that short-term exponential moving average indicators have provided solid support across Friday and Monday, with the cross unable to close below the 20-day, which now intersects around 1.62. Subsequent price action underpins the bullish theme, with notable resistance scant until March 2009 highs around the 1.70 level.
• Despite mixed releases, the positive surprise for the German services flash PMI is helping the single currency to consolidate its bounce on Tuesday. In Canada, GDP data is due on Friday, expected to dip to 0.7% Y/y.
• The BOC maintained its easing bias in September, and the overall communications highlighted risks to growth and employment. BOC Governor Macklem is scheduled to speak on global trade and capital flows today, with text expected at 1415ET/1915BST. Q&A is also expected.
• Scotiabank recently emphasised their bullish EURCAD view, now looking to the 1.65/1.70 range as their next upside target.

Figure 1: EURCAD Monthly Chart - Source: Bloomberg Finance L.P. / MNI

EURUSD (3d Oct) 1.2075c, bought for 0.0007 in ~1k.