BRAZIL: USDBRL Pressuring Key 5.60 Pivot Once Again
Jul-17 13:08
- A strong open for USDBRL saw the pair briefly pierce the 5.60 pivot point in early trade, rising as high as 5.6098, before reverting back below this level following the mixed set of US data.
- This marks another attempt and failure to hold above the 5.60 handle for USDBRL, which will continue to be of technical significance on a closing basis. A clear break would signal scope for a stronger short-term recovery and open 5.7448, the May 23 high.
- Overall, USDBRL maintains a bearish tone and recent strong gains are, for now, considered technically corrective. A resumption of weakness would refocus attention on 5.4027, the Jul 4 low, clearance of which would resume the downtrend.
- Focus ahead remains on trade developments, with a recorded speech by President Lula on the 50% tariff announced by the US set to be broadcast on national TV later today.
Want to read more?
Find more articles and bullets on these widgets:
Historical bullets
SOFR OPTIONS: Post-Data Flow
Jun-17 13:08
Call spread selling, conditional curve plays while underlying futures continue to scale back from post-data highs. White pack (SFRM5-SFRH6) trades steady to -.005. Projected rate cut pricing consolidates slightly from earlier levels (*) as follows: Jun'25 at 0.0bp, Jul'25 at -3.1bp (-3.6bp), Sep'25 at -18.2bp (-19.5bp), Oct'25 at -31.1bp (-32.6bp), Dec'25 at -47.3bp (-48.8bp).
- -10,000 0QZ5 97.50/97.62 call spds, 1.75 vs. 96.73/0.05%
- +2,500 SFRZ5 96.37/96.75 call spds vs. 0QZ5 97.25/97.50 call spd, 1.5 net/steepener
- +2,500 SFRN5 95.37/95.68 put spds, .37
- -4,000 SFRU5 95.68/95.81/96.25/96.37 call condors, 5.25 ref 95.875
EQUITIES: Lloyd's outright call seller
Jun-17 13:07
LLOY (20th June) 68c, sold at 8.20 and 8 in 3k.
- This could be closing, there's 3k OI at that strike.
- Also noted Yesterday, there's £3.05bn worth of Notional Option Expiry for Friday in Lloyds.
CANADA DATA: Biggest Foreign Divestment Of Canadian Bonds Since 2018
Jun-17 13:00
- Foreign investors sold Canadian CAD9.4B Canadian securities in April, including CAD25.1b of bonds that was the largest divestment since Dec 2018. Bond decline largely due to debt retirements.
- Canadian investors purchased CAD4.1B of foreign securities in April.
YTD foreign investment in Canadian securities from Jan to April -CAD15.1B vs +CAD64.3B over the same period last year.
