Weakness in EURGBP this week threatens the recent bullish theme and has exposed support at 0.8278, Mar 7 low. A break of this level would highlight a stronger bearish reversal and exposes key short-term support at 0.8203, Mar 7 low. The cross is also once again trading below both the 20- and 50-day EMAs - a bearish development. For bulls, a recovery would refocus attention on 0.8458, Mar 17 high and a bull trigger.
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EURGBP reversed a mid-session rally Tuesday ahead of the close, keeping the cross in close proximity to its recent lows. Recent price action though has kept key support at 0.8285 intact, Feb 3 low, and if prices can hold above this level, it would suggest the recent move lower has been a correction. The next resistance to watch is at 0.8403, the Feb 16 high. Initial support is at Tuesday’s 0.8311.
TYH2 stuck to a narrow 0-06 overnight, hampered by the closure of cash Tsy trade, owing to the observance of a Japanese holiday. The contract last deals unch. at 126-15. Gyrations in the ACGB space (with movements linked perceptions surrounding the RBA, in addition to a hawkish RBNZ decision) provided some lead for Tsys, but a lack of meaningful macro headline flow made for a contained session. The space looked through the cancellation of Thursday’s Blinken-Lavrov meeting, while the White House took a Biden-Putin meeting off the table (until there is a de-escalation re: Ukraine).
Date | Time | Period | Event |
23-Feb | 0930 | ---- | BOE Governor Bailey et al at TSC |
23-Feb | 1500 | ---- | BOE Tenreyro speaks at NIESR Institute lecture |
24-Feb | 1100 | Feb | CBI Distributive Trades |
24-Feb | 1315 | ---- | BOE Bailey Intro at BEAR Research Conference |
24-Feb | 1600 | ---- | BOE Broadbent moderates panel at BEAR Conference on QE |
25-Feb | 0001 | Feb | Gfk Monthly Consumer Confidence |
25-Feb | 1800 | ---- | BOE Pill closing BEAR Conference, remarks on Unwinding QE |
01-Mar | 0730 | ---- | DMO Gilt Operations Announcement W/C 4/11 April |
01-Mar | 0930 | Jan | BOE M4 |
01-Mar | 1900 | ---- | BOE Mann panels Cleveland Fed discussion |
02-Mar | 0001 | Feb | BRC Monthly Shop Price Index |
02-Mar | 1830 | ---- | BOE Tenreyro speech to Economic Research Council |
02-Mar | 2000 | ---- | BOE Cunliffe speech at Oxford Union |
04-Mar | 0930 | Feb | IHS Markit/CIPS Services/Construction PMI |