What to watch

After taking some time to get interesting this year, the upcoming week will be highlighted by UK data with labour market data (Tues), CPI data (Wed) and consumer confidence/retail sales data (Fri). Until now, UK markets have largely traded off of wider price moves across the Atlantic, with little in the way of purely domestic drivers. This week's data could change that.

• In spite of it being a US holiday, there has been an active overnight session and start to the European trading day. Treasury futures have broken through their January 10 lows to hit new lows of the year, and Bund futures similarly have moved to their lowest levels since early November. This comes after a rather mixed Asian equity session with European equity indices only a little higher on the day, but has been helped by some better than expected Chinese GDP data overnight.
• There's nothing really notable on the calendar today, so we will instead watch technical support/resistance levels. For Bunds we are trading at 169.82 with the intraday low at 169.53 ahead of the November 1 low of 169.48 and major support at the Oct 29 low of 169.34.