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What to watch (1/2)

OUTLOOK
  • After the huge rally seen in Bunds and gilts yesterday the market will be watching today's events to see if there are any triggers for either a reversal today or to take another leg higher.
  • Our technical analyst notes that The break of 137.90, the 50-day EMA, signals potential for stronger near-term gains and that the price has also breached resistance at 139.36, the Jan 25 high. A continuation higher would expose 140.73, the Jan 19 high and a bull trigger. A break of this level would strengthen a bullish case.
  • The morning session will see Eurozone services PMIs released - but only really Spain and Italy will be notable as the French, German and pan-Eurozone prints are all final prints. Eurozone PPI is also due out at 10:00GMT / 11:00CET.

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