PLN: EURPLN Back at Session Highs Following NBP Rate Cut
Oct-08 13:15
EURPLN spikes back to session highs on the rate announcement, albeit today’s gains remain moderate overall (+0.08%).
- While a ‘hold’ was the expected outcome, the consensus was relatively tight and therefore the 25bp cut does not come as a huge surprise amid benign inflation, cooling wage growth, and reduced uncertainty around the outlook for electricity prices.
- For EURPLN, key resistance to watch is 4.3102, the Apr 16 high. A move above this hurdle is required to instead resume an uptrend. First resistance to monitor is 4.2761, the Aug 27 high.
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OPTIONS: EUR Into Upper-end of Recent Range, Nearing Sizeable Strikes
Sep-08 13:14
EUR spot remains pinned between a series of sizeable strikes - over E3.7bln notional is set to roll-off between 1.1700 - 1.1750 today, which could help dictate the range. With US PPI, CPI data set for this week, the larger option pipeline is thinner than usual, but decent sized options expiring at 1.1740-50(E1.4bln) and $1.1825(E1.7bln) in EURUSD on Thursday could be of post-data interest.
Full expiry schedule for today's cut here:
- EUR/USD: $1.1600(E1.2bln), $1.1620-30(E1.0bln), $1.1690-00(E1.3bln), $1.1750(E1.2bln), $1.1835(E873mln)
- USD/JPY: Y146.00($1.1bln), Y146.45-55($945mln)
- USD/CAD: C$1.4000($517mln)
- USD/CNY: Cny6.9500($1.4bln)
SONIA OPTIONS: Z5 1x2 Put Spread Seller
Sep-08 13:11
SFIZ5 96.15/96.05 1x2 put spread, paper sells for 3.0 in 3k.
JAPAN: Takaichi Intends To Run For LDP Leader - Kyodo via BBG
Sep-08 13:08
"*JAPAN'S SANAE TAKAICHI INTENDS TO RUN FOR LDP LEADER: KYODO" Bloomberg
- Not a surprising development.
- Thatcherite MP Sanae Takaichi is a front-runner among many opinion polls - and also ran against Ishiba in the last leadership race. While politically conservative, she's made clear her preference for easy monetary policy and a bigger role for fiscal spending - reminiscent of the Abenomics policy set from 2012 - 2020.
- Takaichi's likely intent to run as LDP leader was a key driver of overnight twist steepening in the JGB curve.
