CZK: EUR/CZK Rebounds After Approaching 25.0
Feb-14 09:14
EUR/CZK has crept higher and last trades +0.020 at 25.052. Bullish focus remains on 25.317, which capped gains on Jan 17. Conversely, bears see the round figure of 25.0 as their key initial target.
- The minutes of the CNB's most recent monetary policy meeting indicated a continued sense of concern about services price inertia, which warrants a cautious approach to further monetary easing. Jan Prochazka said that the central bank is moving from a "fine-tuning" phase of the cycle to a "micro-tuning" phase and called for bringing the policy rate to a level at which it would be possible to react to both upside and downside risks, which in his view was neither 4.00% nor 3.75%.
- CZGB yields sit higher across the curve. The PX Index gains for the seventh consecutive day, adding 0.2% this morning.
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EUROPEAN INFLATION: Broad-based Acceleration Of Spanish Inflation In December
Jan-15 09:07
Spanish December inflation confirmed flash estimates at 2.8% Y/Y, up from 2.4% in November. All major sub-components other than processed foods accelerated on an annual basis, with core (ex-energy/unprocessed food) inflation ticking up to 2.6% Y/Y (vs 2.5% prior).
- Services inflation was 3.7% Y/Y (vs 3.5% prior). A 12.4% Y/Y rise in package holidays (vs 8.1% prior) was an important factor here, with the recreation and culture component at 3.9% Y/Y (vs 2.5% prior). More broadly, the December services PMI highlighted that services firms have been able to pass on input cost rises to consumers.
- Non-energy industrial goods inflation remained soft at 0.3% Y/Y (vs 0.2% prior). In contrast to services firms, the December manufacturing PMI highlighted that competitive pressures have limited pricing power amongst Spanish manufacturers.
- Processed food inflation was 2.4% Y/Y (vs 2.5% prior), while unprocessed food inflation accelerated to 2.1% Y/Y (vs 0.8% prior).
- Energy inflation was 5.5% Y/Y (vs 2.6% prior), driven by fuel prices.
GERMAN AUCTION PREVIEW: On offer next week
Jan-15 09:03
DFA has announced it will be looking to sell the following Green Bunds at its auction next Tuesday, January 21:
- E1bln of the 2.10% Apr-29 Green Bobl (ISIN: DE000BU35025)
- E1bln of the 2.30% Feb-33 Green Bund (ISIN: DE000BU3Z005)
EGB OPTIONS: Bund call spread
Jan-15 09:03
RXH5 131.50/132.50cs, bought for 17.5 in 3k.
