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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 vulnerable following Friday’s sharp sell-off and yesterday’s move lower. Attention is on the 50-day EMA that intersects at 4567.21 today. This average has in the past proved to be a reliable support and represents a key pivot level. It has been tested however a clear break is required to signal potential for a deeper corrective decline. EUROSTOXX 50 futures traded lower again yesterday, down to 3995.00 before rebounding. A bearish risk remains present and potential is seen for weakness towards 3949.50, the Oct 6 low.
- In FX, EURUSD trend conditions remain bearish although for now, the pair remains in a bullish corrective cycle. Resistance points to watch are 1.1374, Nov 18 high and the 20-day EMA. Resistance points to watch are 1.1374, Nov 18 high and 1.1371, the 20-day EMA. This zone has been probed however a clear break is required to suggest scope for a stronger recovery. This would open 1.1514, the Nov 5 low. GBPUSD traded in a volatile manner Tuesday and has defined the day’s low of 1.3195 as a key short-term support. Trend signals remain bearish and a break of 1.3195 would confirm a resumption of the downtrend. Watch resistance at 1.3433, the 20-day EMA. USDJPY remains under pressure following Friday’s 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 114.03, the 20-day EMA.
- On the commodity front, Gold traded lower yesterday. The short-term outlook is bearish with the focus on the base of the bull channel drawn from the Aug 9 low. The channel low intersects at $1759.6 today and is a key support. WTI futures remain in a downtrend despite the strong bounce from yesterday’s low. Attention is on $64.39 next, Aug 24 low.
- In the FI space, Bund futures remain in an uptrend. 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. Short-term pullbacks are considered corrective. Futures have cleared resistance at 126.23, high Nov 9 and attention is on the 127.00 handle next. Key support has been defined at 124.17, the Nov 24 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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