CZK: Koruna Edges Higher, CNB Forecast Presentation Eyed
Nov-07 08:31
EUR/CZK is gravitating toward the recently breached 50-DMA (24.331), with bears looking for losses toward recent cyclical lows located just shy of 24.2. Bulls keep an eye on the 100-DMA, which kicks in at 24.463.
- The CNB left the repo rate unchanged and reaffirmed its familiar rhetoric, refusing to commit to any direction of interest rates. The decision was supported by a new economic forecast. The central bank will deliver a presentation for analysts at 10:00GMT/11:00CET to discuss the new forecast in more detail.
- CZGB yields sit marginally higher across the curve. Czech FRAs have slipped but 12x15 FRAs still sit around 10bp above the 3-month PRIBOR. The PX Index has added 0.3%.
- Czechia's ex-auto retail sales rose by 2.6% Y/Y in September, undershooting the consensus forecast of +4.1%.
- The CNB will publish foreign reserves data at the top of the hour (09:00GMT/10:00CET).
Want to read more?
Find more articles and bullets on these widgets:
Historical bullets
ESM ISSUANCE: RFP issued: Expect a transaction next week
Oct-08 08:28
- “Today ESM has sent a Request for Proposal to a selection of banks from the EFSF/ESM Market Group with regards to an upcoming transaction, subject to market conditions.”
- This likely means a transaction on Mon/Tues next week (14/15 October).
- We pencil in a transaction of around E1.75bln (E1.5-2.0bln).
- The annual funding target was for E7bln and so far there have been 3/10-year EUR issues for E2bln each and a 5-year USD issue for USD2bln.
FOREX: FX OPTION EXPIRY
Oct-08 08:24
Of Note:
EURUSD 1.28bn at 1.1650.
EURUSD 1.7bn at 1.1650 (fri).
AUDUSD 1.1bn at 0.6545/0.6550 (fri).
AUDUSD 1.01bn at 0.6500 (tue).
- EURUSD: 1.1600 (370mln), 1.1625 (325mln), 1.1650 (1.28bn), 1.1660 (250mln), 1.1675 (285mln), 1.1700 (1.21bn).
- USDJPY: 152.00 (308mln).
- USDCAD: 1.3975 (392mln), 1.4000 (300mln).
SOFR: SFRZ6/H7 Lifted
Oct-08 08:11
SFRZ6/H7 paper paid -0.5 on ~6.6K, taken bid over for the balance of an 8K order, with another ~1.1K lots trading on the follow. Small bid left.
