GILTS: Holding Off Yesterday's Lows
Gilt futures trade around the middle of yesterday's range with oil holding near Tuesday lows following the U.S. signalling "very positive" talks with Iran, limiting downside in broader core global FI at this stage. TTF futures are also lower on the day. * Contract +17 at 85.92. * The bounce from the September 14 low appears to be a correction at this stage. However, resistance at the 20-day EMA (85.50) has been breached. The clear break suggests scope for a stronger recovery towards 86.51, a Fibonacci retracement. Key support and the bear trigger is defined at 83.72, the September 14 low. First support lies at 84.69, the September 17 low. * Flash PMI data is due today, but we continue to place greater weight on the BoE's own surveys. * Expect cross-market inputs to drive the space for much of the day, with ongoing focus on the situation in the Middle East. * In local fiscal news, FT reports have suggested that Labour MPs are pushing the government to close stamp duty loopholes, while global banking executives have reportedly warned against the imposition of a windfall tax.
S. signalling "very positive" talks with Iran, limiting downside in broader core global FI at this stage. TTF futures are also lower on the day. 92.
* The bounce from the September 14 low appears to be a correction at this stage. 50) has been breached. 51, a Fibonacci retracement. 72, the September 14 low.
69, the September 17 low. * Flash PMI data is due today, but we continue to place greater weight on the BoE's own surveys. * Expect cross-market inputs to drive the space for much of the day, with ongoing focus on the situation in the Middle East. * In local fiscal news, FT reports have suggested that Labour MPs are pushing the government to close stamp duty loopholes, while global banking executives have reportedly warned against the imposition of a windfall tax.