US: Chicago Fed National Activity Index at -0.32 in January

In the aftermath of the weekend events, Gilts continue to look less attractive, however a weekly inside session on candles suggests a recovery in the long-term. According to Technical Markets Strategist Dmytro Bondar at RBS, “The MACD weekly histogram also shows a positive divergence with the price action. The 114.58 retracement level (50% of the 2012 extremes) proved to be a good support and the range of 114.60-116.60 remains in place with a good chance of recovery towards 117.80 if the latter is broken.”