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Testing next immediate support

BUNDS
  • Regardless of the small bid in Bund following the big miss in UK Retail sales and lower German PPI, the contract tested just short of the next support noted at 133.69, printed a 133.71 low so far today, while small resistance is seen at 134.48 initially, Yesterday's high.
  • Risk remains tilted to the downside, with US Tnotes also targeting the next Psychological area of 110.30, where TYH4 was trading pre FOMC meeting over 1 Month ago.
  • Some of the continued downsides in Futures have been hedged via option upside structures.
  • Next immediate support in Bund is at 133.69, followed by 133.34, and further out would see 2.46% the next Yield resistance.
  • There's no data left out of Europe for the session, and most of the focus will be on the US prelim Michigan.
  • SPEAKERS: ECB Lagarde, IMF's Georgieva, Germany's Lindner in Davos, Fed Goolsbee, Daly (x2), and Barr, before Fed Blackout.

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