CZK: Koruna Edges Lower Alongside CE3 Peers
Feb-21 10:19
EUR/CZK last deals +0.007 at 25.064. CE3 currencies trade on a softer footing amid broader greenback strength, but the koruna has weakened by a smaller margin than the PLN or HUF. Bulls look for a move towards Jan 17 high of 25.317, while bears keep an eye on the 25.0 round figure.
- Local media outlets recirculated reports suggesting that Russia reiterated its demand for the withdrawal of NATO troops from the alliance's eastern flank during the latest round of talks with the US.
- ANO leader Andrej Babis, whose party remains a clear front-runner in all opinion polls, reaffirmed his admiration for US President Donald Trump, but also said that he doesn't agree with Trump's call for an increase in defence spending.
- Economic sentiment in Czechia ticked higher in February, slightly exceeding expectations, as better business confidence offset a modest deterioration in consumer confidence.
- CZGB yields rebounded from initial lows. Curve runs a tad steeper at typing.
- The PX Index operates close to the 2,000 mark.
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GREECE T-BILL AUCTION RESULTS: 26-Week GTB
Jan-22 10:15
| Type | 26-week GTB |
| Maturity | Jul 25, 2025 |
| Amount | E500mln |
| Target | E0.5bln |
| Previous | E500mln |
| Avg yield | 2.45% |
| Previous | 2.61% |
| Bid-to-cover | 2.36x |
| Previous | 1.68x |
| Previous date | Dec 23, 2024 |
US: Large SFR Put Fly
Jan-22 10:10
SFRU5 95.87/95.62/95.37p fly bought for 7 in 40k.
FOREX: USD Dips as Risk Backdrop Shrugs Off Fresh China Tariff Threat
Jan-22 10:07
- Datapoints are few and far between Tuesday, keeping focus on political uncertainty and the first few full days of the Trump White House. The slew of executive orders and memorandums across the past few days remain a background concern for markets, particularly following the downside in Chinese and Hong Kong equities overnight, which were sold on the back of Trump's threat to engage with 10% tariffs on imports from both China and the European Union.
- Despite the weakness in Chinese stocks, risk sentiment has improved across European hours, evident in the strength across AUD/USD, which is again testing the weekly high. Any rally through $0.6302 would be a bullish signal, exposing the 50-dma of 0.6332 for direction.
- The USD has traded on the backfoot across the European morning, helping EUR/USD through the week's highs of 1.0435 to narrow the gap with the 50-day EMA upside level of 1.0460. Moves came alongside firm equity demand from the cash open, which has seen both the FTSE-100 and Stoxx600 crest at another all-time high. US earnings season continues, with today the busiest session for the S&P 500. Proctor & Gamble, Halliburton and Johnson & Johnson are the highlights.
- Central bank speak is defined by the busy ECB schedule today, at which speeches from Knot, Rehn, Lagarde and Nagel are due from the ongoing WEF in Davos. Lagarde has already hit the wires this morning - disclosing little new on policy, as she continues to stress the downside risks to policy.
