EURUSD just steered sharply south from favored 1.2820\30 resistance. 1.2690 is next key ref below to be watched… The 10y SPA/GER spread must be closely watched if approaching/breaking above 6.16% (likely an euro negative if it occurs)… USDJPY may still retrace some of recent stellar gains, but sight is lifted to 82.40\90 now… EURGBP looks set to move back south of 0.80 and with prior short-term lows at 0.7970/60 in mind as next target… EURSEK may re-test new support at 8.6415, but as buyers’ so firmly took kit from key support and closed high yesterday, sights remain fixed on/beyond the recent 8.7190 peak… USDSEK gets a double whammy by higher EURSEK & lower EURUSD and looks staged to break over 6.8150 and move into attraction in the 6.8360\540 area… EURNOK remains under some kind of mild downside pressure, but below 7.3210 is needed to fully confirm a correction well passed zenith and justify complete focus back on the recent 7.2895 low… In this environment NOKSEK looks staged to advance towards 1.1900 +/-25pips… In the EM space we highlight vulnerable ZAR & TRY which if breaking 8.9950 & 1.8095 in the dollar pairs could accelerate weakness… EURPLN ought to establish support at/above 4.10… Despite yesterday’s Dec Bund dropout, the overall picture remains bullish. 142.83 is key to watch while support should be firm at 142.00/141.95… The setback in the Dec US tens is also thought to be temporary and a 134-00 watch is still justified… The Dec S&P500 contract is again subject to selling forces and could expand losses back below 1371 again… Jan Brent crude is also back on a negative track, and even more so on any extension below $107.31…
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SEB tech team