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Posted by Tango
on February 6, 2019, 6:42 am
The market is rangeless and suddenly softer as the $ strengthened. Activity for most of yesterday and this morning has skirted the 105.00 strike. RC is equally flat with the arb at 34.18, just about unchanged. Spreads firmed yesterday as CSO puts in MayJul were sold what seemed to be by trade and MaySep Calls were bought, driving the MayJul to -2.55. The MarMay has been soft. The ¥ is the only currency higher against the $ and the EMs are either lower or unchanged. USDMXN is 19.1061 +.0773, the USDCOP is 3106.99 and unchanged while the USDBRL is 3.6922 +.0227 +.62%. Bond futures are higher while equities, crude and metals are all slightly lower. Sugar and cocoa are higher while cotton is lower.
The behavior of the market has suggested liquidation on both sides. For now Friday’s option expiration is guiding prices. The depth of market is clear on both sides and hopefully 8:00 will bring some activity.