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NBH To Hike Rates By 30bps Today


5yr downside put


France 30-year OATEi: Books open

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  • In the equity space, S&P E-minis remain vulnerable following Friday’s sharp sell-off. Attention is on the 50-day EMA at 4567.25. This average has in the past proved to be a reliable support and represents a key pivot level. While it holds, recent weakness is considered a correction. A clear break though would strengthen bearish conditions. EUROSTOXX 50 futures also sold off sharply Friday and despite currently trading above last week’s low, still appears vulnerable. A resumption of weakness would open 4004.00, Oct 12 low.
  • In FX, EURUSD objectives remain; 1.1185 Jul 1, 2020 low and 1.1128, 1.764 projection of the Jan 6 - Mar 31 - May 25 price swing. For now, the pair continues to strengthen as the correction extends. Resistance to watch is 1.1374, Nov 18 high and the 20-day EMA. GBPUSD continues to consolidate. Trend signals remain bearish and the next objective is 1.3216, 1.236 projection of the Sep 14 - 29 - Oct 20 price swing. USDJPY remains under pressure following Friday sharp sell-off and has probed support at 112.73, Nov 9 low. A clear break would strengthen the bearish case. Initial resistance is at 114.12, the 20-day EMA.
  • On the commodity front, Gold remains inside its recent range. The short-term outlook is bearish within the bull channel drawn from the Aug 9 low. Attention is on the channel base, at $1758.8 today. WTI futures reversed course Friday and have continued to trade lower this week. The recent break of a number of support levels suggest scope for a continuation lower short-term. The focus is on $66.21, 76.4% of the Aug 23 - Oct 25 rally.
  • In the FI space, Bund futures continue to recover from recent lows. Resistance at 172.57, Nov 22 high has been probed. A break would open 172.95, 76.4% retracement of the Aug - Nov sell-off. Key support is at 170.31, Nov 24 low. Gilts rallied Friday and the contract maintains a firmer tone. Futures have cleared resistance at 126.23, high Nov 9 and attention is on the 127.00 handle next.