CZK: Koruna Keeps Ticking Higher Following CNB's "Hawkish Cut"
Feb-07 09:18
EUR/CZK trades -0.027 at 25.059 the day after the CNB's rate decision and bears look for an attack on the 25.0 round figure, while bulls keep an eye on Jan 17 high of 25.317.
- The CNB delivered a "hawkish cut" yesterday. Although members unanimously backed the decision to cut the two-week repo rate by 25bp, they pointed to a limited room for further easing and outlined a cautious approach.
- CZGB yields are generally higher across the curve, with 15s underperforming as we type. The PX Index punched through the 1,900 threshold yesterday and extends gains, adding 0.4% this morning.
- The CNB will hold a meeting with analysts at 10:00GMT/11:00CET to discuss the latest macroeconomic forecast. The meeting will be joined by Bank Board member Karina Kubelkova.
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FOREX: FX OPTION EXPIRY
Jan-08 09:17
Of Note:
EURGBP 1.55bn at 0.8300.
USDJPY 1.7bn at 157.50.
EURUSD 1.06bn at 1.0300 (thu).
EURUSD 4.75bn at 1.0300/1.0350 (fri).
USDCAD 1bn at 1.4325/1.4330 (fri).
EURUSD 3.96bn at 1.0300/1.0310 (mon).
USDCNY 1.34bn at 7.3350 (tue).
- EURUSD: 1.0300 (235mln), 1.0350 (604mln), 1.0375 (215mln), 1.0385 (450mln).
- EURGBP: 0.8300 (1.55bn).
- USDJPY: 157.50 (1.7bn), 157.65 (297mln), 158.00 (375mln).
- USDCAD: 1.4350 (750mln).
- AUDUSD: 0.6220 (283mln).
- NZDUSD: 0.5625 (280mln).
- EURNOK: 11.7000 (304mln).
GILTS: Downside put spread in Gilt
Jan-08 09:09
G H5 88.00/86.00ps, bought for 18 in 5.5k.
BONDS: Fresh Multi-Month Highs For Crude Not Having Much Impact
Jan-08 09:00
Little feedthrough for bonds as both Brent and WTI crude oil futures hit the highest level seen since mid-October.
- Out commodities team have highlighted yesterday’ s API inventory data as a key driver of the move.
- Elsewhere, signs that sanctions are tightening supplies, with a reduction in consumption of Iranian and Russian crude, as well as reports of Ukraine hitting a Russian oil depot that supplies a military airfield, provide further support for crude.
