EU TRANSPORTATION: Air Portugal: privatisation updates

• Secured Overnight Financing Rate (SOFR): 4.34% (+0.01), volume: $2.863T
• Broad General Collateral Rate (BGCR): 4.33% (+0.02), volume: $1.167T
• Tri-Party General Collateral Rate (TCR): 4.33% (+0.02), volume: $1.137T
• (rate, volume levels reflect prior session)

• The modest USD weakness seen into the NY crossover is helping GBP/USD higher, however strength is capped into Monday's post-NFP high of 1.3331 (EUR/USD saw a run higher on the break of the equivalent level). Today's moves are on relatively light volumes: CME GBP futures have seen a mere two-thirds average volume for this time day - typifying the quiet week we've had so far.
• Resilient GBP/USD comes despite the NIESR estimates out earlier today that suggests the government are facing a more dire fiscal picture in Autumn than previously expected - suggesting markets are well priced for sharp spending cuts and/or tax rises at the next Budget.
• Instead, it's the BoE decision Thursday that could be of more consequence, and in particular the vote split: 2-5-2 (50bps cut, 25bps cut, unch) is the modal consensus - and we flag that the baseline projections may become less useful as a communication tool going forward - and as such, less market relevant. Our full BoE preview is here: https://media.marketnews.com/MNI_Bo_E_Preview_Aug25_42afebd294.pdf
• EUR/GBP remains in a nascent uptrend, evident in the recovery from last Thursday's low. Key resistance and the bull trigger remains at 0.8769, the Jul 27 high.

SFIM6 97.00 calls paper paid 8.75 on 4K vs. 96.535.