2 Feb 2015
Market Movers: CHF weak on leaks of a probable new EUR/CHF floor- TDS
FXStreet (Barcelona) - The TD Securities Team shares the market performance during the Asian session, adding that CHF was the weakest in FX space today after leaks sprout out indication that SNB might target a new 1.05-1.10 EUR/CHF floor.
Key Quotes
“The disappointing North American GDP outcomes and weaker China data lent a bid to fixed income on the open, that saw ACGB yields hit record lows heading into the RBA’s meeting tomorrow. 3yr yields hit a 1.885% low and the 10yrs 2.38%, but yields backed up 5bps over the course of the session, driven by the move higher in US10yr yields (+3bps to 1.67% in Asia) and some profit taking on ACGB longs.”
“NZGB yields closed the session 5.5bps lower, but this was prior to the grind higher in yields commencing this afternoon (NZGB 10yr 3.12% vs 3.5% OCR).”
“In FX, the USD is mixed, but the AUD has held up very well considering the weak data tone, +0.35% to US$0.7790, near the highs of the day.”
“The CHF is the weakest today, -0.7% perhaps on news “leaks” that the SNB is targeting EUR/CHF of 1.05-1.10.”
“Equities across the region are generally weaker, China stocks –1.8%, Nikkei –0.7%, but RBA rate cut speculation helping the ASX +0.7%.”
“Gold is at US$1280, copper and iron ore futures are unchanged but brent futures have given back some of the month end squeeze seen on Friday, -2.3% in Asia.”
Key Quotes
“The disappointing North American GDP outcomes and weaker China data lent a bid to fixed income on the open, that saw ACGB yields hit record lows heading into the RBA’s meeting tomorrow. 3yr yields hit a 1.885% low and the 10yrs 2.38%, but yields backed up 5bps over the course of the session, driven by the move higher in US10yr yields (+3bps to 1.67% in Asia) and some profit taking on ACGB longs.”
“NZGB yields closed the session 5.5bps lower, but this was prior to the grind higher in yields commencing this afternoon (NZGB 10yr 3.12% vs 3.5% OCR).”
“In FX, the USD is mixed, but the AUD has held up very well considering the weak data tone, +0.35% to US$0.7790, near the highs of the day.”
“The CHF is the weakest today, -0.7% perhaps on news “leaks” that the SNB is targeting EUR/CHF of 1.05-1.10.”
“Equities across the region are generally weaker, China stocks –1.8%, Nikkei –0.7%, but RBA rate cut speculation helping the ASX +0.7%.”
“Gold is at US$1280, copper and iron ore futures are unchanged but brent futures have given back some of the month end squeeze seen on Friday, -2.3% in Asia.”