BUNDS: Bund and Treasuries stays underpinned overall

• RES 4: $2762.3 - High Nov 1  
• RES 3: $2730.4 - 76.4% retracement of the Oct 31 - Nov 14 bear leg
• RES 2: $2726.2 - High Dec 12    
• RES 1: $2698.0 - High Jan 10     
• PRICE: $2682.2 @ 07:19 GMT Jan 15
• SUP 1: $2644.3 - 50-day EMA   
• SUP 2: $2596.2/2583.6 - Low Dec 30 / 19
• SUP 3: $2564.4 - Low Nov 18 
• SUP 4: $2536.9 - Low Nov 14 and a key support 

Recent gains in Gold appear corrective - for now. However, the yellow metal continues to hold on to the bulk of last week’s gains and scope is seen for a continuation higher near-term. A stronger recovery would open $2726.2, the Dec 12 high and an important resistance. Clearance of this level would be a bullish development. On the downside, a reversal lower would expose $2583.6, the Dec 19 low. Initial support is at $2644.3, the 50-day EMA.

Looking through the details here we have services notably softer than expected at 4.37%Y/Y. Core goods and food/alcohol a little higher than expected (so less of a surprise in core / headline).

• Air fares are soft. Only rising 16.2%M/M in December - the expectations we had seen for that were around 40-45%M/M (remember this is NSA data). They alone contributed to headline CPI falling 0.14ppt and around double that for services CPI.
• Accommodation services also soft - contributing -0.07ppt to headline CPI.
• Cultural services -0.04ppt contribution.
• Other than that clothing and tobacco (both expected to contribute negatively).
• At first glance this doesn't look very broad-based at all and is largely the most volatile components contributing almost entirely to the downside in services / core / headline CPI.
• GBPUSD hit a low of 1.2163 but is around 20 pips higher at the time of writing.

• MNI: UK DEC CPI +0.3% M/M, +2.5% Y/Y