NY Open – The next step
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China optimism fell further after the latest housing ministry presser lacked specific numbers, with the housing minister noting that individual cities will be more responsible for homebuying restrictions. China equities dragged lower, though CNH traded flat. AUD is the best FX performer after Sep jobs beat, expectations for cuts could be dragged further out towards May. US equity futures are ticking higher after earnings beat overnight, more earnings to come, especially NFLX towards the close. EURUSD trading flat into the ECB (08:15) – a 25bps cut is fully priced, watch any guidance that indicates a full dovish pivot. US yields are inching higher into key data. We are watching whether jobless claims (08:30 EDT) continue to rise in non-hurricane/strike impacted states, which would confirm slowing labor market trends. Retail Sales should print solid, while manufacturing weakness will be prominent in Sep IP (09:15). TRY, EGP expect unchanged rate decisions. CLP expects a hawkish 25bps cut (17:00). |
COP – COP was one of the worst performers ofS flows f a weaker LatAm session, down -0.38% vs USD. Our local COP traders saw mostly outright RHrom offshore leveraged accounts and local RMs. The team also noted long end point demand from leveraged names while local RMs preferred to continue rolling shorter end tenors. Strong USD bids continue to be a theme in EM FX ahead of the election and Middle East uncertainty, which may help explain USDCOP rally today. No local economic data out of Colombia today, with only August ISE Economic Activity prints being released on Friday.
