USD/ZAR trades on a softer footing as the greenback shows some weakness (BBDXY -0.2%), with global headline flow revolving around US President Trump's talks with his Russian and Ukrainian counterparts. The pair last deals at 18.4994, almost 300 pips worse off, with bears looking for a dip through Jan 24 low of 18.3022, while bullish focus falls on Jan 13 high of 19.2296.
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Ahead of this morning’s OAT-positive headlines Citi wrote “we turn neutral on BTPs, while risk of further widening is perhaps elevated for OATs around today’s inaugural policy speech by PM Bayrou.”
Single stock Bank Option, BNP:
Unsurprising rhetoric from ECB hawk Holzmann this morning, speaking at a Euromoney conference in Vienna:
Holzmann expressed some concerns around energy prices in an interview with Kurier on Dec 28: “It could be the case that we take more time before lowering rates again,”...“It’s true, some energy prices are trending upwards again. But there are also other scenarios for how inflation could return, such as a stronger depreciation of the euro.”