FED: Williams Echoes No Hurry To Cut Rates

MNI speaks to the ECB’s former director general of market operations Francesco Papadia.- On MNI Policy MainWire now, for more details please contact sales@marketnews.com

• RES 4: 5766.42 50-day EMA
• RES 3: 5554.41 20-day EMA      
• RES 2: 5435.00 High Apr 4
• RES 1: 5305.25 High Apr 8                             
• PRICE: 5014.50 @ 14:34 BST Apr 9   
• SUP 1: 4832.00 Low Apr 7 and the bear trigger                      
• SUP 2: 4760.88 1.618 proj of the Feb 19 - Mar 13 - 25 price swing 
• SUP 3: 4663.75 1.764 proj of the Feb 19 - Mar 13 - 25 price swing
• 7SUP 4: 4519.84 61.8% retracement of the Oc ‘22 - Feb ‘25 bull cycle   

A bearish theme in S&P E-Minis remains intact and the cross is trading closer to its recent lows. Scope is seen for an extension towards the 4800.00 handle next. Note that moving average studies are in a bear-mode position, highlighting a dominant downtrend and bearish market sentiment. Initial firm resistance is seen at 5554.41, the 20-day EMA. Short-term gains are for now, considered corrective.

Fielding several questions surrounding the sell off in long end gilts. There hasn’t been a UK-specific trigger to explain the move.

• The move was definitely U.S. Tsy-led to start with, but it seems like this may have been the opportunity that some were waiting for when it comes to adding shorts further out the gilt curve, as multi-year/decade levels are broken in yields/curves. Futures also breached key support at 90.55, but have since retaken that level after bottoming at 89.99.
• The UK’s fiscal position remains delicate, with the potential for impending support for the auto sector (amongst others), stagnant economic growth and increasing gilt yields continuing to pressure UK finances.
• This makes gilts susceptible to such moves when broader core global FI markets come under pressure.