CHILE: BCCh Reserve Accumulation Plan Not Intended to Affect Exchange Rate
Aug-06 10:50
- Chile’s central bank will start an international reserves accumulation program on August 8, where it will buy up to $25m of reserves per day for a three-year period. The central bank wants to gradually replace part of its credit lines in foreign currency with international reserves, without affecting the current level of international liquidity. According to a statement, the goal is not to change financial conditions, nor affect the FX rate, but to strengthen the management of international reserves. Full statement here.
- The El Teniente complex ran out of stockpiled ore and had to put its plants, including the Caletones smelter, on care and maintenance, Codelco said Tuesday. The shutdowns will reduce output of the metal used in wiring, electronics and construction by about 30,000 metric tons a month, a quarter of Codelco’s production, and Bloomberg say that means ripples from last week’s collapse will start to reach global markets soon – albeit Copper futures haven’t delivered a major reaction to the outage so far.
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EQUITIES: Large Commerzbank Rolling Put
Jul-07 10:45
CBK (19/06/26) 12p vs (18/06/27) 20p, bought the 2027 for 2.92 in 40k.
OUTLOOK: Price Signal Summary - USDJPY Trades Through The 50-Day EMA
Jul-07 10:43
- In FX, the trend condition in EURUSD remains bullish with price trading closer to its recent highs. Moving average studies are in a bull-mode position highlighting a clear uptrend and note too that corrections, when they do occur, have been shallow. This reinforces the trend condition. A resumption of gains would signal scope for a climb towards 1.1851, the Sep 10 2021 high. Key short-term support to watch lies at 1.1630, the 20-day EMA.
- A bull cycle in GBPUSD remains in play and the latest pullback appears to be a correction. Support to watch is 1.3602, the 20-day EMA. A clear break of it would signal scope for a deeper correction towards the 50-day EMA at 1.3462. Key resistance and the bull trigger has been defined at 1.3789, the Jul 1 high. Clearance of this hurdle would resume the uptrend. Note that MA studies are in a bull-mode position - this suggests the M/T uptrend remains intact.
- USDJPY has started the week on a firmer note. Price has breached the 50-day EMA, at 144.91, and a close above it would highlight a stronger reversal. This would expose 146.19, the Jun 24 high. For now, gains still appear corrective. Moving average studies are in a bear-mode position, signalling a dominant downtrend. A resumption of weakness would open 142.12, the May 27 low and a key short-term support.
EURIBOR OPTIONS: Ratio Put Spread
Jul-07 10:38
2RH6 97.75/97.25ps 1x4, bought the 4 for 4.5 in 2.25k (sold the 1).
