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Large Euro-Bond Put Spd


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Sterling Reversing Late Thursday Strength

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  • In the equity space, S&P E-minis traded lower again yesterday. Attention is on the key 50-day EMA at 4407.80. Key resistance is unchanged at 4539.50, Sep 3 high. EUROSTOXX 50 futures continue to consolidate. The contract remains above 4132.50, Sep 9 low. A clear break of this level would expose 4078.00, Aug 19 low. The bull trigger is unchanged at 4252.00, Sep 6 high.
  • In FX, EURUSD failed to hold onto yesterday's high. Recent weakness highlights a short-term bearish theme and a resumption of weakness would open 1.1758 next, 61.8% of the Aug 20 - Sep 3 rally. Initial resistance is at 1.1851, Sep10 high. The key resistance remains 1.1909, Jul 30 and Sep 3 high. Recent activity in GBPUSD has defined short-term directional parameters at; 1.3913 as resistance, Sep 14 high and support at 1.3727, Sep 8 low. Yesterday's gains did result in a breach of 1.3892, Sep 3 high. however Cable failed to hold above it and reversed lower.
  • On the commodity front, Gold, while slightly firmer, remains in a range and is trading above recent lows. The near-term outlook remains bullish but a break of $1834.1, Jul 15 high is required to confirm a resumption of gains. Support to watch is unchanged at $1774.5, Aug 19 low. A break would threaten a bull theme and signal scope for a deeper reversal. WTI futures maintain a bullish outlook and are firmer today. The focus is on $71.30, the bear channel top drawn from the Jul 6 high. This marks a key resistance and an important hurdle for bulls. A clear break would open $73.52, Jul 30 high. Note the channel top has been probed.
  • In FI, Bund futures remain vulnerable and the contract traded to a low of 171.33 yesterday. The focus is on 171.30, 2.382 projection of the Aug 5 - 11 - 17 price swing. Resistance to watch is 172.48, Sep 9 high. Gilt futures remain in a bear mode following last week's breach of support at 128.03, the Jul 6 low (cont). The contract traded lower yesterday as it extends the bear that started Aug 4. 127.65 has been probed, 61.8% of the Jun 3 - Aug rally (cont). An extension would open 127.39, J1.50 projection of the Aug 20 - 26 - 31 price swing.