FOREX: Dollar Maintains Supportive Tone Following Data/Refunding
Nov-05 13:52
- In the aftermath of both the ADP data and the US refunding announcement, pressure on treasuries has provided a supportive tone to the greenback, helping the USD index consolidate gains near recovery highs.
- The higher yields have most notably assisted USDJPY to the best levels of the session, now extending its bounce from the overnight lows to over 100 pips, trading just shy of 154.00. We highlighted yesterday that the pair stalled for a third time around the 154.45 level overnight - a potentially bearish short-term signal against the underlying bullish trend that has been in place in recent weeks.
- This area will remain in focus heading into the ISM services release later today. Above here, attention would be on 154.80, the Feb 12 high.
- Associated moderate pressure on the likes of EURUSD and GBPUSD, although both pairs remain off recent cycle lows, while USDCAD continues to pressure the top of the bullish channel drawn from the Jul 23 low and shown below:
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BOE APF SALES RESULTS: GBP775mln of short-dated gilts with bid-to-cover of 3.03x
Oct-06 13:49
Previous bid-to-cover ratios: most recent first: 2.49x, 2.18x, 2.38x, 2.24x.
* These operations had a size of GBP750mln
ECB: ECB Speak Wrap (Sep 25 – Oct 6)
Oct-06 13:40
The past two weeks has seen an increase in the frequency of ECB Executive Board monetary policy commentary. There haven’t been any major surprises, with Lagarde, de Guindos, Lane and Cipollone all providing some variant of rates being in a “good place” at present.
For a full summary of ECB speak since the September decision, see here
SOFR OPTIONS: Red Pack Vol Buyer
Oct-06 13:39
SFRU6/Z6/H7/M7 96.875^, bought for 306.5 in 300 lots.
