NY Open – Taking stock
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Majority of markets traded rangebound overnight, with US yields modestly higher, led by the back-end. USDCNH saw a break above 7.15 though lost momentum. Reuters reported that China was considering issuance of extra debt >RMB10trn over the next few years, another attempt to revive the economy, which is broadly in line with our economists’ expectations. Japan FinMin Kato said that the government will continue to monitor developments in the currency market. USDJPY trades flat at 153 at print. Swedish GDP unexpectedly contracted, further fueling expectations for a 50bps cut in Nov. Ahead, US data returns in the form of JOLTS and Conf. Board Confidence at 10:00 EDT. Beyond headline numbers, keep an eye on hiring, quits and layoff rates within JOLTS. Swiss CB Governor Schlegel will be speaking at 14:00 EDT. Q3 earnings season continues, GOOGL reports after the close. No EM catalysts scheduled today.
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Trader Take: USDCOP Open Oct 29
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USDCOP traded higher yesterday as we saw outflows from RM, HFs and Corp. The move left a new YTD high at 4359.4 during the session as the currency continues consolidating its higher trend. As I said yesterday a mix of uncertainty and higher USD amid US elections, RHS month end flows and decentralization bill uncertainty. Volume spiked again as interbank traded above 1Bn. Today after market we should have the final voting of the decentralization bill. Yesterday President Petro announced that he will support the bill after making some changes to it. The amount to be decentralized got reduced to 39.5% vs. 46.5%. The time for the project to be fully enforced will be extended to 12 years as well. Nevertheless, most economist and analysts still believe the project has strong fiscal implications. It seems very likely for the project to be approved after yesterday changes and the president compromise. I will be watching today 4325 as resistance and 4400 as market should continue being mostly flow driven. |