CHILE: USDCLP Remains In Consolidation Mode
Oct-17 11:20
- USDCLP closed 0.5% lower at 956 yesterday, keeping the pair around the middle of the recent ~945-965 range. However, the risk-off tone and pullback in copper today, amid the US regional banking concerns will provide more of a headwind to the peso.
- For USDCLP, key short-term resistance has been defined at 968.90, the Oct 6 high. A move above this hurdle is required to signal a reversal. On the downside, sights remain on key short-term support and the bear trigger at 945.53, the Oct 9 low.
- Today’s domestic calendar remains light, with no data due until the BCCh traders survey next Thursday, followed by September PPI inflation on Friday. After that, focus turns to the BCCh monetary policy meeting on October 28, when the central bank is expected to remain on hold for now, amid persistent core inflation pressures.
- In other news, following his resignation as energy minster yesterday, Diego Pardow said that he had received a report two weeks ago, alerting him to the error in the calculations used to set electricity rates for customers. The error, which prompted his resignation, had gone undetected since 2017, he said. The government said yesterday it would compensate families for the overcharges.
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SOFR OPTIONS: BLOCK: Oct'25 SOFR Calls
Sep-17 11:18
- 4,000 SFRV5 96.62 calls, 1.0 vs. 96.36/0.10% at 0711:01ET
EQUITY OPTIONS: HUGE Commerzbank Put Roll
Sep-17 11:17
- CBK (18/12/26 vs 18/06/27) 20p, bought the 2027 in 100k.
It is confirmed that the trade is good, and not a miss cross.
BOJ: Nikkei Suggest Rates To Be Held Steady On Friday - More Interest In October
Sep-17 11:15
"*BOJ EXPECTED TO HOLD RATES STEADY AT MEETING THIS WEEK: NIKKEI" Bloomberg
No big surprises there with that Nikkei headline (story here ) - there's much more interest in the BOJ decisions later this year (October, December).
- The MNI Policy Team highlighted that BOJ officials will pay close attention to the September Tankan results on Oct 1.
- Economists predict the Bank of Japan’s September Tankan survey will show a modest improvement in benchmark business sentiment from three months ago, with capital investment plans by major firms for fiscal 2025 likely to remain solid.
- While supportive for the BOJ in seeking opportunities to raise the policy rate, the results alone are unlikely to be decisive for a hike at the October meeting. Uncertainty over trade policy continues, though the July 22 Japan-U.S. trade deal is expected to help lift sentiment.
