FOREX: Greenback Tilts Higher as US Employment Report Awaited
Jan-08 17:59
- FX price action has remained subdued on Thursday, with a lack of impetus owing to the close proximity of tomorrow’s US payrolls data, the final labour market report for the Fed before its Jan 28 decision. Early declines for the likes of AUD and NZD have consolidated amid a moderately softer risk backdrop, while EURUSD has been grinding steadily lower through the session.
- For AUDUSD, 0.4% declines this morning come on the back of comments from RBA Deputy Governor Hauser, who offered little guidance on possible tightening, which was interpreted as dovish at the margin considering the recent hawkish repricing. Corrective price action has narrowed the gap to initial firm support, which intersects at 0.6674, the 20-day EMA.
- EURUSD has slipped below 1.1650 in late trade, extending the pull lower from the 1.1808 high in late December. Spot has edged below support at 1.1659, the Jan 5 low, cancelling a possible reversal signal on Jan 5 - a dragonfly doji candle pattern. For now, a bearish theme appears likely to dominate from a technical perspective.
- USDJPY meanwhile continues to hold relatively contained ranges, with another attempt above the 157.00 handle today short-lived. Ahead of tomorrow’s data, it is worth highlighting the trend structure remains bullish and short-term weakness is considered corrective. MA studies are also in a bull-mode position, highlighting a dominant uptrend. Sights are on 157.89, the Nov 20 high and a bull trigger.
- All eyes will be on tomorrow’s US labour market data, while a Supreme Court ruling on the legality of the Trump tariffs could also come as early as tomorrow.
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FRANCE: Lawmakers Back Spending Part Of Social Security Budget
Dec-09 2025 17:57
- "*FRENCH LAWMAKERS BACK SPENDING PART OF SOCIAL-SECURITY BUDGET" - bbg
- Le Monde, translated: "Members of Parliament adopt the third part of the Social Security budget relating to expenditure. On Tuesday, members of parliament adopted the third part of the draft social security financing bill (PLFSS) for 2026, relating to expenditure, with 227 votes in favor and 86 against."
- OATH6 is currently at 120.55 (+0.38) having briefly touched a session high of 120.59 in late trading on the headline of being passed. Initial short-term resistance is yesterday's 120.74 high.
- Recall that the outcome of today's vote was crucial to the progress of overall budget negotiations (the State budget is currently being reviewed by the Senate), and by extension OAT performance where improved prospects had seen the OAT-Bunds spread narrow towards 70bps (70.6bps at the cash close earlier).
- The revenue section of the Social Security budget was passed on Friday, but this was in part due to several absentees from the far-right RN - who are unambiguously opposed to the bill.
PIPELINE: Corporate Bond Update: Issuance Slows Ahead Final FOMC for 2025
Dec-09 2025 17:57
- Date $MM Issuer (Priced *, Launch #)
- 12/09 $750M #Bank of Montreal 2NC1 +50
- 12/09 $500M #American National Global Funding 3Y +100
- $3.6B Priced Monday
US TSYS/SUPPLY: WI 10Y Re-Open
Dec-09 2025 17:53
WI 10Y has inched up to 4.175% from 4.170% earlier - ahead of the $39B 10Y note auction re-open (91282CPJ4) cut-off at 1300ET, compares to last month's tail: high yield of 4.074% vs a when-issued yield of 4.068%
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