BELGIUM AUCTION RESULTS: ORI Operation

For Gilt, the next big one is at 4.752%, the Aug 2023 high and highest since Oct 2008.

• Today this level now equates to 90.64.

• EURUSD presses to fresh session lows in recent trade ~1.0310 amid the general firmer price action for the greenback Wednesday. The pair has been slowly eroding the rally from earlier in the week, that had been underpinned by higher-than-expected German inflation and hints that US tariffs could be more selective than first thought.
• With the underlying bullish dollar trend prevailing, EURUSD is now ~120 pips off the week’s highs and notably back below the prior breakdown point of 1.0335. Recent gains appear technically corrective and the Jan 2 sharp sell-off reinforces a dominant downtrend. The bear trigger has been defined at 1.0226, the Jan 2 low.
• ING note that the strong US macro story is fighting technical short-term bullish factors for EURUSD but believe the pair may find decent support at 1.0300 for now.
• Fed minutes and US employment represent the key risks for the pair; however, we will also receive German and French IP data along with Eurozone retail sales this week. ECB’s Villeroy will speak later today in Paris at 1815CET.