CZECHIA: Election Campaign Enters Final Days, Czechia Reports Budget Balance
Oct-01 07:48
- President Petr Pavel appealed to the voters to participate in the October 3-4 parliamentary elections. In a short televised address to the nation, he said that Czechia needs a stable government committed to EU and NATO membership amid continued threat posed by Russia's expansionist foreign policy.
- In the final accord of ANO's election campaign, its leader Andrej Babiš rejected accusations of 'pulling Czechia to the East' and said that under his government Prague became 'Russia's second biggest enemy after the US'. He pledged 'never to go into government with the communists' amid speculation that the post-communist Stačilo! could be a coalition partner.
- Ahead of his departure for an informal EU summit, Prime Minister Petr Fiala reiterated that 'security is a priority today' and insisted that it trumps domestic issues. Asked if he could reconsider partnering up with ANO, he said that 'it makes no sense to cooperate with these people'.
- Czechia's S&P Global Manufacturing PMI slipped to 49.2 in September from 49.4 prior as 'a renewed contraction in new orders dampened the overall picture.' Meanwhile, inflationary pressures remained a reprieve for manufacturers, as cost burdens rose at the slowest pace so far this year.'
- The Finance Ministry will release September budget data at 13:00BST/14:00CEST. Fiscal deficit reached CZK165.4bn in the first eight months of the year against the full-year target of CZK241bn.
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USD: USDSEK edges toward the 2025 low
Sep-01 07:45
- The Dollar is paring back some of its Overnight losses, edging in the green against the JPY, and the CAD.
- The EUR was and still is the best performer, but by 0.27% now, some 16 pips off the high for the EURUSD.
- As noted on the European early session, the chart to watch was the USDSEK, and this is still the case as USDSEK continues to print new intraday low.
MNI: ITALY AUG MANUF PMI 50.4 (49.8 FCAST, 49.8 JUL)
Sep-01 07:45
- MNI: ITALY AUG MANUF PMI 50.4 (49.8 FCAST, 49.8 JUL)
EURIBOR OPTIONS: J.P.Morgan Recommend Conditional Bull Steepener
Sep-01 07:36
J.P.Morgan recommended initiating Dec25/Dec26 conditional bull steepeners (buying ERZ5 98.0625 calls vs. selling 0RZ5 98.0625 calls) late on Friday.
- They noted that “with the ERZ5/Z6 curve now inverted, we have a bias towards some steepening. We believe that if increased ECB easing expectations are priced into the curve it will likely be front loaded into 4Q25 or 1Q26”. They also noted that “the Dec25/Dec26 curve exhibits a strong negative directionality versus yields and is currently too flat on a 3-month regression basis”.
