US 10YR FUTURE TECHS: (M5) Support Remains Intact

You are invited to listen to a Livestreamed MNI Connect Video Conference with ECB Executive Board Member, Piero Cipollone.

Details below:

• TOPIC OF DISCUSSION: The ECB's balance sheet and its implications for monetary policy
• DATE: Tuesday 18 February
• TIME: 14:00 - 15:00 London time
• This event will be run as a Zoom Webinar and is a public, on-the-record event.

To register please go to: MNI Webcast Registration

• JPY gains are shallow, however the currency remains the strongest performer on the day. EUR/JPY's resultant pullback has the cross testing the Y159.00 handle, meaning the failure to top the 50-dma last week has cost the price over 200 pips in two sessions - and signaling markets can remain volatile even in light newsflow sessions. A stronger reversal would refocus attention on 155.61, the Feb 10 low and bear trigger. 
• Meanwhile, AUD and NZD also trade firmer, reflecting the general strength seen across core European equity markets. The EuroStoxx 50 is outperforming as banks, once again, provide a solid contribution to the upside. The Munich Security Conference saw little material progress made toward any form of Ukraine dialogue, however reports suggesting the US could fund defence purchases from European arms companies has buoyed underlying sentiment.
• Crude oil markets saw a brief spell of support on headlines suggesting that OPEC+ could condiera  delay of the restart of some shuttered oil supply in April - moves that have brought further support to oil-tied FX. Nonetheless, CAD remains just softer off the Friday close, with the near-term focus shifting to Canadian CPI for January, due tomorrow.  
• Datapoints have been few and far between Monday, and that remains the case into the Monday close, with just Canadian housing starts on the docket. US markets remain closed today for Presidents' Day for the duration of Monday trade, likely to limit volumes, price action and the Presidential schedule well into the close.