BUNDS: US-UK Trade deal and the BoE in focus Today

Latest headlines from Chinese Foreign Ministry spokeperson Lin Jian (via bbg):

• "*CHINA VOWS FIRM RESPONSE TO US TARIFFS, LIN SAYS" bbg
• "*CHINA DEPLORES, OPPOSES US TARIFF THREATS, LIN REPEATS"

Earlier this morning, a Chinese Ministry of Commerce Statement noted that "The US threat to escalate tariffs on China is a mistake on top of a mistake"..."If the US insists on its own way, China will fight to the end".

Other headlines from the ongoing NDRC symposium with local companies:

• "*CHINA'S NDRC VOWS TO DRIVE ECONOMIC RECOVERY, HELP FIRMS" bbg
• "*NDRC: CHINA TO ACCELERATE POLICY IMPLEMENTATION"

A reminder that today's PBOC fixing was above the closely watched 7.2000 for the time since 2023. The market is taking this as a sign of them being open to let the peg go, and continues to see a higher USD/CNH as the cleanest way to play the tariffs. Asia though could once again not get above the key 7.36/37 area.

• RES 4: 165.43 High Nov 8        
• RES 3: 164.90 High Dec 30 ‘24 and a key medium-term resistance   
• RES 2: 164.55 High Jan 7
• RES 1: 162.37/164.19 High Apr 7 / High Mar 18 and the bull trigger 
• PRICE: 161.88 @ 07:18 GMT Apr 8 
• SUP 1: 158.30 Low Apr 7   
• SUP 2: 157.02 76.4% retracement of the Feb 28 - Mar 18 bull cycle  
• SUP 3: 155.60 Low Low Mar 4  
• SUP 4: 154.80 Low Low Feb 28  

EURJPY is trading in a volatile manner. The latest pullback still appears corrective, and the strong rally off Monday’s low reinforces this theme. Key short-term support has been defined at 158.30, Monday’s low. A break of this level is required to signal scope for a deeper retracement. For bulls, the cross has traded through the 20-day EMA. A continuation higher would expose 164.19, the Mar 18 high and the bull trigger.

• RES 4: $74.66 - High Jan 22  
• RES 3: $72.91 - High Feb 11
• RES 2: $68.72/72.28 - 50-day EMA / High Apr 2 and key resistance
• RES 1: $64.85 Low Mar 5 low and a recent breakout level.  
• PRICE: $61.34 @ 07:00 BST Apr 8 
• SUP 1: $58.95 - Low Apr 7   
• SUP 2: $57.79 - 2.236 proj of the Jan 15 - Feb 4 - 11 price swing
• SUP 3: $56.81 - 2.382 proj of the Jan 15 - Feb 4 - 11 price swing
• SUP 4: $55.00 - Round number support 

A bearish theme in WTI futures remains intact following the recent impulsive sell-off. The move down has resulted in the breach of a number of important support levels. The break reinforces a bearish threat and, despite being in oversold territory, signals scope for a continuation of the bear leg. Sights are on $57.79 next, a Fibonacci projection. Initial resistance is seen at $64.85, the Mar 5 low and a recent breakout level.