CZK: Koruna Edges Higher, Corrects CPI-Driven Move
Jan-08 10:49
The koruna is the best performing EMEA currency today, with EUR/CZK dealing -0.020 at 24.258 in a correction of yesterday's upswing facilitated by a soft CPI print. Bearish focus remains on the psychologically significant 24.0 figure, while a break above the 100-DMA (24.298) would allow bulls to target Dec 18/Nov 5 highs of 24.411/24.420.
- The political impasse around the ministerial nomination for Motorists' Filip Turek continues as President Pavel reportedly denied PM Babiš's request to appoint him as Environment Minister.
- Industrial output contracted by 0.3% Y/Y in November, but this has been attributed to a different number of working days. Adjusting for this effect, industrial production would have reached the highest level since pre-pandemic times.
- CZGB yields sit a touch lower across the curve. The PX Index refreshed all-time highs.
Want to read more?
Find more articles and bullets on these widgets:
Historical bullets
US-CHINA: FT Reports That China May Restrict Access To H200 Chips
Dec-09 10:47
The FT reports that China may restrict access to Nvidia’s H200 chips despite approval for shipment from US President Trump yesterday. A brief downtick in equity futures is noted around the timing of the story, but the move lacks traction for now. Some highlights from the story:
- "Beijing is set to limit access to Nvidia’s advanced H200 chips despite Donald Trump’s decision to allow the export of the technology to China as it pushes to achieve self-sufficiency in semiconductor production."
- "According to two people with knowledge of the matter, regulators in Beijing have been discussing ways to permit limited access to the H200, Nvidia’s second-best generation of artificial intelligence chips."
- "Buyers would probably be required to go through an approval process, the people said, submitting requests to purchase the chips and explaining why domestic providers were unable to meet their needs."
- "No final decision had been made yet, the people added."
US TSY OPTIONS: Large 5yr Call Spread
Dec-09 10:45
FVF6 109.25/109.75cs, bought for 9.5 in 20k (expiry 26th Dec).
BOE: ILTR: GBP896mln net takeup; broadly flat usage for 5 weeks
Dec-09 10:44
- The BOE's ILTR operation saw weekly takeup of GBP2.136bln with a net increase of GBP0.896bln.
- Overall this puts the outstanding amount at record high of GBP62.5bln.
- Bigger picture, ILTR usage hasn't notably increased since the Level A clearing spread was increased to Bank Rate +3bp (from Bank Rate flat). For the last 5 operations usage has been between GBP60.9 - 62.5bln.
