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Oil plummets on Risk Off

BUNDS
  • Bund stays supported on the cash open, albeit off the session high.
  • The contract will likely stay underpinned, following continued falls in risk, following a FT story, where the Moderna chief stated that the vaccine will struggle with the Omicron variants.
  • Risk is off, but EMini S&P is still short of Friday's low.
  • More impressive and through another session low as Europe opens, is WTI, which has now lost 15.36% since Thursday, or $12.18.
  • Next support in WTI is the 09/09 low at $66.67.
  • Today sees French CPI, and EU CPI.
  • Out of the US, MNI Chicago PMI.
  • SPEAKERS: Plenty of focus on Powell with the prepared testimony: “The recent rise in Covid-19 cases and the emergence of the omicron variant pose downside risks to employment and economic activity and increased uncertainty for inflation,”
  • SUPPLIES; Italy 2026 and 2032 (equates combined 26.7k BTP), and German 7yr (Equates to 14.4k Bund), will have very limited impact on the contract.

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