Trial now

Pullback Considered Corrective


Holding Above Recent Lows


BLOCK, Large 3Y Midcurve Put Condor

FOREX: ***The DXY consolidated on Monday, as the JPY gave up its early gains,
with USDJPY back above 106 as risk assets moved higher.
- CAD continues to garner attention heading in to this week's BoC decision. The
BoC is exp. to stand pat, with Trump's tariffs set to support the BoC status
quo. CAD has been on the backfoot since early Jan, with Q4 GDP missing the
"data-dependent" BoC's forecasts on Friday. USDCAD had a look at 1.300, last
trading ~1.2985. Some notable resistance levels have been cleared, with the next
level of interest through the figure is 1.3027, the 2% vol. band & then 1.3083,
the 6-month bull channel top projection. Hourly support sits @ 1.2910-15.
- For AUD, Tuesday brings the RBA decision & GDP input data/retail sales. The
RBA is exp. to leave the cash rate unch., with the Bank's views on wage growth,
household debt & household consumption unlikely to change.
- GBP was the G10 outperformer as UK PM May stated that gov't is close to a
Brexit transition deal, before pulling back on reports that the EU is planning a
vague trade offer. EUR finished strong despite Italian political gridlock as
spot markets took confidence in sanguine implied vols & a recovery in BTPs.
MNI London Bureau | +44 0203-865-3809 |