Forex - US North American Summary and Highlights 27 Dec


 21:04 (GMT) 27 Dec

  [Forex Highlights]

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US North American Summary and Highlights 27 Dec (0100-WCQQ-C01)

Overview

Largely quiet but USTs lead further period end yield demand while the dollar has an offered lean.

News highlights

- US Dec consumer confidence 122.1 from 128.6 vs mkt 128

- US Nov pending home sales +0.2% from +3.5%

- WSJ: Richard Clarida and Lawrence Lindsey being considered for Fed vice chair

Currencies:

- Slightly softer USD tone generally but EUR/USD ultimately unable to push on over 1.19.
- We did see a relatively sharp jump in USD/JPY mid-morning, looking fix related, but USD/JPY still covered by 50 pips over the last week.
- GBP is doing little and probably braced for the data picking up next week, plus of course the next steps on Brexit.
- AUD and NZD maintain their bid tone, the CAD lagging slightly despite a slightly better tone to crude into the close.
- EUR/CHF hit a high at 1.1775, best level since the SNB abandoned the 1.20 floor in Jan'15.
- EUR/SEK is well off recent highs to test below 9.85, EUR/NOK less well offered to allow NOK/SEK a look back below 1.00.

Bonds:

US North American Summary and Highlights 27 Dec (0100-WCQQ-C02)

Relentless period end bid for yield and longer duration unopposed in thin trading interest. 30s back to 2 ¾ %, while T.bond up well over 1point after driving back clear of the 50dma. 5yr auction sloppy and dealer sponsored not helped by the day's richening

2s -0.8bps @ 1.89%, 5s -4.9bps @ 2.19%, 10s -6.9bps @ 2.41%, 30s -8.1bps @ 2.74%

Agency Spreads: Freddie/Fannie 5s +1.1/+0.1 bps, 10s -0.1/+0.2 bps.

Swap Spreads: 2s -1.55bps, 5s +0.63bps, 10s +1.12bps.

Equities:

Some profit-taking in energy stocks while healthcare gains cushioned in largely sideways trade.


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