SCANDIS: NOKSEK Probing 0.9100, Key Support At 0.9065
Dec-17 15:15
NOKSEK is probing the 0.9100 figure amid a brief impulse of SEK strength. This narrows the gap to key support at 0.9065, the April 9 low.
- Tomorrow’s Riksbank and Norges Bank decisions may set the tone for the cross into year end.
- On balance, we see dovish risks to the Riksbank and hawkish risks to the Norges Bank. If realised, this may help NOKSEK find a short-term bottom.
- We highlighted last week that NOKSEK has entered a key long-term support zone around 0.9000 – which may prove a solid psychological barrier to further downside heading into next year.
Figure 1: NOKSEK Since 2022 (Source: Bloomberg Finance L.P)
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GILTS: Holding Off Lows Ahead Of Key Risk Events
Nov-17 15:09
Gilts hold off lows registered over the past couple of sessions, although yields still print 5-13bp higher across the curve when compared to Thursday’s closing levels.
- Curve now sees a parallel ~3bp shift lower yields, early steepening unwound.
- Futures last +16 at 92.31 vs. highs of 92.43.
- Initial support of note located at 91.82, while bulls ultimately need to close Friday’s opening gap lower (~93.35) to start turning the technical tide back in their favour.
- As we noted previously, while long end swap spreads indicate increased fiscal risk premium being priced in after Chancellor Reeves’ apparent u-turn when it comes to income tax rate hikes, those spreads are still well off year-to-date lows.
- AXA Investment Managers halved exposure to gilts on Friday, according to a senior fund manager that spoke to RTRS.
- Elsewhere, OI data pointed to net short setting dominating in futures on Friday.
- SONIA futures flat to +3.0.
- BoE-dated OIS little changed to 2bp more dovish on the day, showing 18.5bp of easing for December, 26.5bp through February and 35bp through March.
- CPI data headlines the UK calendar this week (Wednesday), ahead of next week’s Budget (which will also be delivered on a Wednesday).
- Expect our full CPI preview to be published in due course.
MNI EXCLUSIVE: Poland's Deputy Climate Minister speaks on ETS2
Nov-17 15:02
Poland's Deputy Climate Minister Krzysztof Bolesta speaks about the economic cost of the EU's environmental targets.- On MNI Policy MainWire now, for more details please contact sales@marketnews.com
MNI: US AUG CONSTRUCT SPENDING +0.2%
Nov-17 15:00
- MNI: US AUG CONSTRUCT SPENDING +0.2%
- US AUG PRIVATE CONSTRUCT SPENDING +0.3%
- US AUG PUBLIC CONSTRUCT SPENDING +0.0%
