Most trends now back on track after the prolonged corrections triggered by the EU summit last Friday. Spain (Italy) made a impressive return into the limelight (sharply falling equites, zooming bond yield (net up 56 bps in two days), widening spreads)). EURUSD bear triangle (target 1.20/21)or a direct break for 1.20/21? CABLE turned nicely from 1.5625 and now looks set to crack the 1.5485 support, EURSEK severely stretched to the downside, so a bit of congestion coming? EURNOK long downside spike hints of selling interest drying up, making USDNOK looking very interesting for the topside, EURRON made it to a new all time high yesterday, BUNDS and NOTES should continue to rally, €STOXX50 printed a key day reversal for the downside so the upward correction now probably over and done, OIL should turn down …now.
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SEB tech team