CHILE: Break Above 50-day EMA Resistance Would Undermine Bearish USDCLP Trend
Nov-05 12:54
- Against a more stable risk backdrop today, USDCLP is little changed in early trade, with the pair continuing to hold close to the prior breakdown level around 945. Yesterday, USDCLP rose back above this level amid a pullback in copper prices, narrowing the gap to key short-term resistance at 953.66, the 50-day EMA.
- For now, however, the trend condition in USDCLP remains bearish and a resumption of weakness would turn sights back to 922.67, the Jul 2 low and a key support.
- Analysts have noted that the BCCh’s cautious stance on further rate cuts is seen as being supportive of the peso, while a market-friendly outcome from the upcoming presidential election should also buoy sentiment.
- After holding rates at 4.75% as expected last week, the BCCh maintained a cautious tone amid uncertainty over the core inflation outlook. The Board noted that inflation and activity have evolved as expected and indicated that it would take time to collect more information before considering further interest rate cuts towards neutral.
- This keeps focus on upcoming CPI data, with October figures due this Friday, where the headline rate is seen returning to within the 2-4% target range (from 4.4% y/y), as core inflation also edges down from 4.0%.
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CROSS ASSET: US Tnotes is testing the Initial support
Oct-06 12:52
- US Tnotes is challenging the small initial support seen at 112.12, some desks might look for better support at 112.06.
- But in Yield terms, Investors will look at 4.20% nrxt, not a major level and would equate to 112.03 Today.
- There are no spillovers in the USDJPY as of Yet since the move in Govies is slow and gradual.
SOFR OPTIONS: Call Condor
Oct-06 12:41
SFRZ5 96.25/96.37/96.43/96.56c condor, bought for 6 in 4k.
EURIBOR OPTIONS: Correction To Earlier Call Flow
Oct-06 12:33
Corrects EURIBOR OPTIONS: ERH6 98.06/98.12/98.25 Call Fly 2.5K Sold posted at 13:18 London
- Correction to earlier call flow: ERH6 98.00/06/12/25 broken call condor with the ERH6 98.25/43 call spread paper paid 0.5 for both on 1.75K.
