FOREX: GBP, AUD Strength Plays Through; BoJ Decision Closely Scrutinised

• +20,000 FVH6 108.25 puts, 12

Tuesday's Philadelphia and Richmond Fed non-manufacturing surveys for December were mixed in terms of activity, but added to the broader finding of increasing price pressures seen across the month's regional Fed services reports.

• The Philly regional non-manufacturing general activity index came in at -16.8 (-15.0 expected, -16.3 prior), with the Richmond Fed's Fifth District non-manufacturing survey showing a disappointing improvement in the local business conditions index to -11 (-9 expected, -15 prior).
• Richmond's represented a modest recovery from November's 7-month low but was still a below-average reading, while Philly's was a 2-month low and extended the streak of double-digit negative months to 11.
• On the inflation front, the situation appeared to worsen. Philly prices paid picked up to a 4-month high 40.3 (34.7 prior), with prices received receding 3 points to 19.0, suggesting increasing margin pressure for regional firms.
• And for Richmond area firms, current prices paid rose to the highest since December 2023, at 6.1% (representing 12-month lookback) with a dip in prices received, though expectations for future prices were relatively moderate.
• These are the last Services surveys we get until the Dallas Fed's on Dec 30. Summing up: the NY and Richmond Fed surveys saw a slight improvement with KC jumping the most, while Philly was on the soft side.
• The more noticeable trend has been in prices paid, which ticked up across the board in December.

• US TSY 52W BILL AUCTION: HIGH 3.380%(ALLOT 70.25%)
• US TSY 52W BILL AUCTION: DEALERS TAKE 32.84% OF COMPETITIVES
• US TSY 52W BILL AUCTION: DIRECTS TAKE 3.02% OF COMPETITIVES
• US TSY 52W BILL AUCTION: INDIRECTS TAKE 64.15% OF COMPETITIVES
• US TSY 52W AUCTION: BID/CVR 3.74