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GILT TECHS

(Z1) Double Bottom Reversal

BONDS

Gilt/Bund spread 6.4bps tighter

EQUITY TECHS

E-MINI S&P (Z1): Bulls Still Firmly In Control

CORN TECHS

(Z1) Gains Considered Corrective

EGB OPTIONS

Bund call spread

Focus on NFP Ahead of Long US Weekend

EURO-DOLLAR

Corrective pullback away from Tuesday's high of $1.2011 extended through Thursday's session to a low of $1.1789 into the 0800BST fix. Rate then recovered through the balance of the day, stepping its way back to a high of $1.1865 during the NY afternoon, before closing around $1.1850. Sharp downturn in equity markets, led by tech stocks, saw a move into risk cover which benefited the usual USD, JPY and Chf with the EUR also seeing some inflow which provided the single currency with some buoyancy during the NY session. Moves were seen as position adjustments ahead of today's US Employment Report, and the US long weekend. EUR/USD eased to $1.1839 in early Asia but managed to recover to $1.1858 around the Tokyo open. Goto-bi day(for tomorrow Sep5) fix interest saw JPY demand emerge which pressed EUR/USD back to $1.1841 via EUR/JPY sales. Rate again settled around $1.1850 through the balance of the session, with some early sales noted emerging in Europe. Support remains around $1.1840, a break to open a deeper move toward $1.1810/00 ahead of Thursday's low of $1.1789. Resistance $1.1858/65 ahead of $1.1875/65. Focus on US Jobs data at 1330BST, median forecast 1350k, unemployment 9.8%, AHE flat on the month. With the US on holiday Monday expect data reaction to trail off into the NY afternoon. Decent sized option expiry interest of note at today's NY cut, $1.1900-10 holds E3.6bln, $1.2000 E2.9bln.
MNI Techs: EURUSD remains vulnerable following this week's failure above 1.2000, and technical signals still highlight a S/T threat to the recent bullish outlook. The sell-off Tuesday from the day high resulted in a close near session lows confirming a "shooting star" candle pattern. This is a bearish development. Further weakness would expose key support at 1.1754, Aug 21 low. Bulls need a break above Tuesday's 1.2011 high to resume the uptrend.