COMMODITIES: WTI Futures Bull Cycle Intact, $80 the Next Target
A volatile bull cycle in WTI futures remains intact. Despite being in overbought territory, the contract traded higher Tuesday to confirm a resumption of the current uptrend. The move higher paves the way for a climb towards the $80.00 handle next. The first key support to monitor is $66.75, the 20-day EMA. A pullback would allow the overbought condition to unwind. Gold continues to trade below Monday’s intraday high. For now, a short-term bullish theme remains intact following recent gains. The metal has cleared all key retracement points of the sharp sell-off between Jan 29 - Feb 2. This strengthens the short-term bullish theme and signals scope for an extension towards key resistance and the bull trigger at $5595.5, the Jan 29 high. Initial firm support to watch lies at $5083.1, the 20-day EMA.
- WTI Crude up $1.73 or +2.32% at $76.37
- Natural Gas up $0.04 or +1.51% at $2.962
- Gold spot up $10.87 or +0.21% at $5150.53
- Copper down $4.55 or -0.77% at $586.2
- Silver up $0.38 or +0.45% at $83.9415
- Platinum up $5.58 or +0.26% at $2166.29
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GILT AUCTION RESULTS: Decent gilt auction
- Decent gilt auction with solid bid-to-cover and the LAP (lowest accepted price) coming in higher than any time in the last 45 minutes of the bidding window.
- Following the results the 4.75% Oct-35 gilt has hit a new intraday high (currently 101.292 at writing) and helped to pull gilt futures around 7 ticks higher.
US: First Procedural Vote On Govt Funding Package Expected At 11:15 ET 16:15 GMT
Politico reports that the House of Representives will vote on the rule for the five-bill government funding package and DHS spending patch at 11:15 ET 16:15 GMT, with a final vote tentatively scheduled for 13:00 ET 18:00 GMT.
- The rule vote is trickiest part of the process for House Speaker Mike Johnson (R-LA) as it is not likely to receive any Democrat support. The Republican majority provides just a single-vote cushion if all members are present and voting, after Johnson yesterday swore-in Deocratic Rep Christian Menefee (D-TX), who won a Special Election on Saturday.
- However, as noted in previous bullet (US: Vote To End US Govt Shutdown Expected Today) two Republican hardliners signalled yesterday they would back the rule, after meeting with President Trump at the White House.
- If the rule passes, and the measure will advances to a final vote, there is likely to be a contingent of Democrat votes to offset any Republican defections.
GILT AUCTION RESULTS: 4.75% Oct-35 Gilt
| 4.75% Oct-35 Gilt | Previous | |
| ISIN | GB00BTXS1K06 | |
| Amount | GBP4.25bln | GBP4.50bln |
| Avg yield | 4.585% | 4.456% |
| Bid-to-cover | 3.63x | 3.26x |
| Tail | 0.2bp | 0.3bp |
| Avg price | 101.268 | 102.295 |
| Low price | 101.256 | 102.275 |
| Pre-auction mid | 101.222 | 102.245 |
| Previous date | 14-Jan-26 |
