EUROZONE DATA: Oct Flash PMI: Composite At 17-month High; France The Laggard

• No real reaction in Bund, althought it has pushed higher after the German IFO missed expectatio, came below consensus, the EURUSD dipped  to session low on tyhe back of it.
• The liquidity has been quite poor acroos assets in early and most of the moves in G10 FX have been a function of the Dollar bid, as Cable also push through a new intraday low.
• Closest Technical in G10 FX is in Cable, with the next support eyed at 1.3458, the Trendline support drawn from the Aug 1 low.

The Swedish Economic Tendency indicator rose to a year-to-date high of 97.2 in September (vs 96.3 prior). Increases were seen in consumer confidence, alongside the retail, construction and manufacturing sectors. Services sector confidence declined a little.

• Sentiment remains below the neutral 100 level, but the combination of another Riksbank rate cut and increased Government fiscal spending (with particular emphasis on households) should support further improvements ahead. Key for both institutions is whether this translates to better real consumer spending/economic activity outcomes.
• Barring an unexpected shock. the Riksbank’s easing cycle is likely over after yesterday’s 25bp cut to 1.75%.
• Consumer confidence rose for a fifth consecutive month to 93.2, up from a year-to-date low of 82.2 in April. Relative to August, the “Macro” index (consumer’s perceptions of general economic activity) rose to 97.6 (vs 94.8 prior) while the “Micro” index (consumer’s perceptions of their personal economic situations) rose to 90.5 (vs 89.0 prior).
• Business sentiment is strongest in the retail sector (106.5 vs 105.8 prior), after a brief dip below 100 in June. Other sectors remain below neutral.
• Expected prices continued to decline (diffusion index of 12 vs 13 prior and a YTD high of 22 in March), supporting the Riksbank’s assessment that the summer inflation rise was likely to be temporary.
• The expected employment diffusion index was steady at 1, while the labour hoarding index eased to 3 (vs 5 prior).

0QX5 96.875/97.125 strangle desks initially suggest that paper paid 15 on 6K, while others point to a vol seller. -4% delta.