FOREX: USD Index Roughly Unchanged Amid Broader Cross-Asset Volatility
Jan-29 17:56
- The ICE dollar index sits very close to unchanged levels on the session Thursday, despite intra-day volatility and some extremely aggressive swings for major equity indices and precious metals. De-risking on the back of softer Microsoft earnings, geopolitical concerns in the middle east and the high likelihood of another US government shutdown have prompted gold to have a near $500 intra-day range, while Nasdaq futures pulled back around 2.8% from session highs before stabilising.
- The most notable price action in G10 FX has been for the Australian dollar, where AUDUSD had an aggressive turnaround after it reached a fresh cycle high of 0.7094 overnight. The swift reversal for risk during the US session then saw the pair print a low of 0.6969 before recovering to 0.7030 as we approach the APAC crossover. Importantly, a daily close below 0.7041 would bring an end to the impressive streak of winning sessions that saw AUDUSD extend its 2026 advance to around 6.3%.
- Broader de-risking has modestly boosted the Japanese Yen, with USDJPY pulling back below 153.00, although downside momentum has failed to materialise and the most recent lows just above the 152 handle remain unscathed.
- In similar vein, the Swiss Franc remains on the front foot with USDCHF sliding back below 0.77 and EURCHF matching the most recent lows of 0.9158, and the lowest levels since the removal of the peg in 2015. SNB President Schlegel spoke today on the current economic situation and monetary policy, notably there was no mention of the recent CHF strength, with some analysts citing 0.9100 and 0.9000 as levels that will start to ring the alarm bells.
- German and Spanish inflation prints kick off the data calendar on Friday, before Canada GDP, US PPI and the MNI Chicago PMI are all scheduled.
Want to read more?
Find more articles and bullets on these widgets:
Historical bullets
OPTIONS: Eurex Trade Ends Year With Mixed Bund Structures
Dec-30 17:52
Tuesday's Europe rates/bond options flow included:
- RXG6 126.5/126.0 put spread, paper pays 10.5 in 5k and 10 vs 127.53 on 7.2K
- RXG6 132.00 calls paper paid 2 on 6K
- RXG6 128.00/129.00/129.50 broken call fly paper paid 21.5/22 on 5K
- RXH6 127.50/125.00 1x2 put spread paper paid 49 on 2K (vs. 127.60) on 2K
- SFIG6 96.45/55/65 call fly 1K given at 1.25, desks suggest looks like closing out of an existing position
- SFIZ6 96.90/97.00 call spread vs. 96.30/20 put spread paper paid 0.75 for the call spread vs. 96.65 (13% delta) on 3K
- Reminder: Eurex derivatives will close Tuesday evening and not reopen
until Friday. STIR & bond futures and options trading on ICE Europe will cease at 12:15 Wednesday and resume on Friday.
SOFR OPTIONS: Dec'26 SOFR Midcurve Call Spread Buy
Dec-30 17:43
- +20,000 0QZ6 97.50/98.00 call spds, from 5.75 to 6.0 ref 96.78
US TSY FUTURES: BLOCK: Mar'26 5Y Sale
Dec-30 17:16
- -20,000 FVH6 109-14.5, sell through 109-14.75 post time bid at 1149:03ET, DV01 $880,600.
- The 5Y contract trades 109-14.25 last (+.25)
Trending Top
Mar-27 20:13
