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Gold Inching Toward Bull Trigger

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A fairly busy session but also a puzzling one regarding semi core, with few dislocations.

  • Still difficult to pinpoint a clear catalyst for the big underperformance in BTP today.
  • This has been the question of the day in the street.
  • Some suggestion a possible carry trade, but this has been unclear and unconfirmed
  • Next support in the contract comes at 150.11 Low Jun 8 and key near-term support
  • The spread versus the German 10yr has now widened by 6.7bps, moving from a 101.1828 low yesterday to 107.8517 today..
  • Italy's Draghi also said that The European growth is bouncing back.
  • And although the midday headline may have helped the downside momentum in BTP, the contract was under pressure from the open.
  • Looking ahead, after market RATING:
  • Fitch on Slovenia (current rating: A; Outlook Stable) & the United Kingdom (current rating: AA-; Outlook Negative)
  • Moody's on Luxembourg (current rating: Aaa; Outlook Stable) & Slovakia (current rating: A2; Outlook Stable)