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RUSSIA

CBR Hike Rates by a Larger-Than-Expected 75bps

US TSYS

Bull Flatter, With PMIs And Powell Ahead

OUTLOOK

Markit PMIs, Fed Chair Powell

UK T-BILL AUCTION PREVIEW

1/3/6-month UKTBs

MARKET INSIGHT
  • In the equity space, S&P E-minis are trading close to the all-time high of 4238.25 May 10 high. This remains a key resistance and the trigger for a resumption of the uptrend. Initial support is at 4165.25, Jun 3 low.
  • In the FX space, EURUSD remains vulnerable following last week's price action. The focus is on 1.2099, the 50-day EMA. GBPUSD remains below last week's high of 1.4248 on Jun 1. A deeper pullback would expose 1.4006, May 13 low. Note the 50-day EMA intersects at 1.4012 and also represents a key support level. USDJPY sold off sharply Friday and attention is on support at 109.33, Jun 1 low. A break would threaten the recent uptrend and expose 108.56,May 25 low.
  • On the commodity front, Gold faced strong selling pressure Jun 3 and together with the recent overbought condition, the move lower suggests scope for a deeper corrective pullback. The next support is $1852.3, May 19 low. Trend conditions in Oil remain bullish. Brent (Q1) gains have opened $73.00 next, a round number resistance. WTI (N1) has today tested the $70.00 psychological level. A break would open $70.22, 2.618 projection of the Mar 23 - 30 - Apr 5 price swing
  • Within FI, Bunds (U1) have tested the 50-day EMA at 172.01 but have not yet confirmed a clear break. While it holds, the outlook is bearish. Support to watch is at 170.99. May 31 low. Gilts (U1) remains below resistance at 127.74/82, highs between Apr 20 and May 26. A bearish risk remains present.
MNI London Bureau | +44 203-586-3805 | taso.anastasiou.ext@marketnews.com