EURIBOR OPTIONS: Call spread buyer
Feb-16 10:34
ERN3 96.00/96.125cs, bought for 9.5 in 10k
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USD: AUDUSD is through yesterday's low
Jan-17 10:32
- AUD is losing small grounds against the USD and the EUR, all in small.
- AUDUSD is through yesterday's low, with next support coming at 0.6916, Friday's low.
- As noted, there's 3.61bn worth of option expiry at 0.6900 for Friday.
GERMAN DATA: Rebound in ZEW Outlooks as Prices Ease & China Reopens
Jan-17 10:27
GERMANY ZEW JAN CURRENT SITUATION -58.6 (FCST -57.0); DEC -61.4
GERMANY ZEW JAN EXPECTATIONS 16.9 (FCST -15.0); DEC -23.3
- The January ZEW survey signalled an optimistic kick-off to 2023, as the expectations index rebounded by a huge 40.2 points to re-enter positive territory (for the first time since Feb '22) at 16.9. This was the fourth month of improved outlooks and outpaced forecasts substantially, which expected a more mild 8-point increase.
- A much more modest improvement was recorded in the current situation assessment (up 2.8 points at -58.6).
- Easing inflation, improved optimism surrounding energy supply and lower energy prices (assisted by the introduction of government price caps) added to the optimism boost. Furthermore, easing China restrictions should improve export demand for Germany, which has been a key downward driver in factory orders over the past months.
- This more positive start to the year followed a robust 2022 full-year GDP print for the largest eurozone nation, which hinted at the economy possibly having avoided a Q4 contraction.
GILT AUCTION RESULTS: Decent to relatively strong auction
Jan-17 10:06
- We had noted in our preview that we looked for a relatively wide tail and the 0.9bp that we have seen meets that criteria (but is smaller than than the mean of 1.4bp seen on 0.25% Jan-25 gilt auctions in 2022 and the 1.8bp/1.5bp seen in Nov/Dec respectively).
- The bid-to-cover was decent at 2.23x, particularly given that this was the largest gilt auction in nominal terms since January 2016.
- All in all a decent to relatively strong auction.
- Gilt futures are sitting at their lows of the day after the results were released.
