EUR: Extending some gains
Aug-26 09:06
- DXY hovers to session low, helps EURUSD towards parity.
- The EUR test session high against CAD, AUD, JPY, CHF, CNH.
- As just noted, there's 1.69bn worth of option expiry for today at 1.0000.
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BONDS: Nord Stream, Italy politics and Fed driving markets
Jul-27 09:05
- Gilts and Bunds are being pulled lower by Nord Stream concerns - as the flow of gas to Europe slows and gas prices rise, inflationary concerns build - with SONIA futures up to 5 ticks lower on the day and Euribor futures up to 3.5 ticks lower. This has pulled yields higher across the curve with the German curve bear flattening (but gilts steepening).
- BTP spreads have widened after S&P yesterday adjusted the outlook for Italy from positive to neutral on concerns that the political uncertainty will slow reforms. 10-year BTP-Bund spreads are now around 240bp - notably above the 200bp level that Bank of Italy President Visco cited as the threshold for levels that would be unjustified by fundamentals.
- Treasuries have been moving to the beat of their own drum this morning as the market looks ahead to the Fed statement and presser later. A 75bp hike is fully priced by markets with the focus instead on communication surrounding expectations for policy in September and onwards.
- We will also receive durable goods data today, as well as US trade, inventory and pending home sales.
- TY1 futures are up 0-0+ today at 119-28 with 10y UST yields down -3.1bp at 2.778% and 2y yields down -2.5bp at 3.031%.
- Bund futures are down -0.01 today at 156.00 with 10y Bund yields up 0.7bp at 0.929% and Schatz yields up 1.8bp at 0.351%.
- Gilt futures are down -0.10 today at 117.63 with 10y yields up 0.7bp at 1.922% and 2y yields up 0.2bp at 1.813%.
EURIBOR: EURIBOR FIX
Jul-27 09:04
- EUR001W -0.1180 0.0580
- EUR001M -0.0620 0.0270
- EUR003M 0.2380 0.0260
- EUR006M 0.6310 0.0080
- EUR012M 1.0130 -0.0200
USD: USDNOK edges towards yesterday's low
Jul-27 09:00
- NOK is extending gains versus the Dollar, close to 1% up on the session, and the pair has now nearly reversed yesterday's gain.
- Immediate support in USDNOK will be seen at yesterday's low 9.7900, which was also the lowest print for this Month.
