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JGB TECHS

(U1) Tilted Higher

AUSSIE 10-YEAR TECHS

(U1) Uptrend Weakening

US TSYS SUMMARY

Bullard Kickstarts Reflation Unwind Theme

AUDUSD TECHS

Fresh 2021 Lows

EURO-DOLLAR
  • Reported position adjustments allowed EUR/USD to push higher Monday, the USD losing ground despite a risk off move in equities.
  • EUR/USD rallied to a high of $1.1794 ahead of the 1600BST fix, off an earlier low of $1.1703, before it drifted off to $1.1765 during the NY afternoon, closing the day at $1.1770.
  • Goto-bi day demand for EUR/JPY provided a lift to EUR/USD in Asia, edging rate to $1.1781 into the European open.
  • Germany PPI(0700BST), EZ Current Account(0900BST) provide domestic data interest. US Housing Starts, Building Permits at 1330BST.
  • ECB de Cos speaks at 1250BST. Fed speakers include Quarles(1550BST), Evans(1800BST), NY Fed Singh(1830BST), Bostic(2200BST).
  • Option expiries of note $1.1745(E1.4bln), $1.1790-1.1800(E1.4bln), the latter interest linked to resistance into $1.1800.
  • MNI Techs: A fairly strong close Monday strengthens the intraday reversal and exposes key near-term resistance at 1.1831, Oct 12 high. This level represents the trigger for a resumption of the bullish reversal that occurred on Sep 25 and would open 1.1859 initially, a retracement level. Sub 1.1684 levels, Sep 30 low, is required to reinstate a bearish threat.
MNI London Bureau | +44 203-586-2231 | john.webb@marketnews.com