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Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
MARKET INSIGHT
- In the equity space, S&P E-minis remain volatile and price continues to trade above the Jan 24 low of 4212.75. This week’s price action is allowing the recent oversold reading to unwind. Initial resistance to watch is Wednesday’s high of 4446.25, Jan 26 high. The trigger for a resumption of bearish activity is 4212.75 low. The short-term trend direction remains down. EUROSTOXX 50 futures activity remains volatile. Price continues to trade above Monday’s low of 3990.50 which is the trigger for a resumption of the recent bearish threat. Resistance to watch is at 4215.50, Jan 24 high.
- In FX, EURUSD traded sharply lower Thursday and cleared key support at 1.1186/85, the Nov 24 and Jul 1 2020 lows. This confirms a resumption of the broader downtrend that started Jan 6, 2021 and paves the way for weakness towards 1.1070 next, the May 29, 2020 GBPUSD remains vulnerable following the sell-off from the Jan 13 high. The pair has cleared a number of support points and the focus is on 1.3301, 76.4% retracement of the Dec 8 - Jan 13 bull phase. Recent USDJPY price action has defined a key short-term support this week at Monday’s low of 113.47. The pair has cleared resistance at 115.06, the Jan 18 high. The break reinstates a bullish theme and opens 116.35, the Jan 4 high and key resistance.
- On the commodity front, Gold remains under pressure. This week’s sharp sell-off has resulted in a break of the bull channel base at $1794.9 today - the channel is drawn off the Aug 9 low. A clear breach of the channel base would strengthen the developing bearish threat and signal scope for weakness towards $1782.8, Jan 7 low and $1753.7, the Dec 15, 2021 low. WTI futures resumed their uptrend Wednesday and the outlook remains bullish. The contract has cleared $87.10, the Jan 20 high. This opens the psychological $90.00 handle.
- In the FI space, Bund futures found resistance this week at 171.07 on Jan 24. A clear break of the 171.00/07 zone is required to signal scope for a stronger recovery. The trend remains down and the bear trigger is unchanged at 168.95, Jan 19 low. Gilts remain in a downtrend and below resistance at 123.79, Jan 13 high. The bear trigger is unchanged at 121.93, Jan 19 low.
Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
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