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EGB SYNDICATION

Austria 15-year syndication: Launched

BONDS

Bear steepening

MARKET INSIGHT

Price Signal Summary - EURJPY Weakness Extends

FOREX

Greenback Improving Ahead of Retail Sales

IRELAND T-BILL AUCTION RESULTS

5-month IRTB

MARKET INSIGHT
  • In equities, E-mini S&P futures extend this week's recovery and are pressuring the 3800.00 level. The next resistance and likely near-term objective is 3823.50, Jan 28 high.
  • In the FX space, USDJPY is holding onto recent gains and pressuring the 105.00 handle. The recent break of the channel resistance drawn off the Mar 24 high and 104.40, Nov 11 high, paves the way for a climb towards 105.16, Nov 13 high and 105.68, Nov 11 high. The latter level is a key resistance.
  • EURUSD is softer and has this morning traded through support at 1.2054, Jan 18 low. The break confirms a resumption of the corrective downtrend and opens 1.2011, Sep 1 high and a former breakout level. The 1.2000 handle is exposed too.
  • EURGBP is softer too and is pressuring the 0.8800 handle. Scope is seen for weakness towards 0.8759, the May 12, 2020 low.
  • On the commodity front, Gold directional triggers are the resistance at $1875.2, Jan 21 high and the support at $1831.5, Jan 27 low. Silver surged higher yesterday but is under pressure today. Further weakness would open $27.073, the 50% retracement of the Jan 18 - Feb 1 rally. Volatility is likely to remain elevated. Oil contracts are firm. Brent (J1) has cleared resistance at $57.31, Jan 13 high to confirm a resumption of the broader uptrend. This opens $58.59, 76.4% of the Jan - Apr 2020 sell-off (cont). WTI (H1) has also resumed its underlying uptrend and targets $55.00 next, a round number resistance.
  • In the FI space:
    • Bunds (H1) have probed support at 176.89/88, Jan 29 low and a trendline drawn off the Jan 12 low. This exposes 176.63 next, Jan 22 low.
    • Gilts (H1) are softer too and approaching key support at 133.55, Jan 12 low.