OVERNIGHT NEWS
# Dollar capitalises on return of risk aversion, month/quarter end rebalancing flow, defies tighter bond yield differentials. Euro Stoxx futures -0.6%, S&P support 3750/3710. INR slumps to new low for second day, approaching 79.00/USD. Turkey lifts objections for Finland and Sweden to join NATO.
# Day ahead: Germany June CPI, Euro economic confidence, Sintra panel discussion at 3pm CET with Lagarde, Powell and Bailey.
# Spain CPI rockets to 10.2% yoy in June from 8.5% in May, consensus was 8.8%. HICP accelerates to 10.0%, core jumps to 5.5%.
# Nikkei -1.0%, EUR 10y IRS -3bp at 2.37%, Brent crude -0.3% at $117.6/b, Gold -0.3% at $1,816/oz.
Wrapping up 1H. Despair for European FX but joy for commodity currencies.
COP – Back from local holiday, COP is outperforming its peers and up more than 1% against the dollar. This morning USDCOP is bouncing back after seeing some inflows earlier which should be mainly related to bond inflows which trading has been seeing. On a closing level, our local trader, is watching the 4,100 level. Liquidity continues to be thinner than usual with volumes below average. The market should continue being mainly flow driven, trading in a range that may only crack on further local developments.
}US Conference Board Consumer Confidence at February 2021 low, UST curve flattens; USD strengthens amid waning risk sentiment; ECB’s Lagarde affirms guidance from June ECB meeting; China cuts total quarantine period; NBH sets aside gradualism with a 185bp hike; US 10y at 3.172% (-2.8bp)