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Posted by Tango
on February 8, 2019, 7:03 am
There was some pressure followed by firmness in line with $ activity. Both markets have been quiet with KC remaining in a half a cent range and unchanged from yesterday’s post-close. Bids are building below 104.00 and fund buying should prevail at 8:00. Nevertheless the market is generally under slight pressure for now on this option expiration Friday. Spreads are also quiet and steady with MarMay trading at -2.95 but well offered. The arb at 33.25 is showing that RC has been relatively steadier. Although the £ is the only major currency higher than the $, several emerging markets are also higher. USDMXN is 19.0655 -.0245, USDCOP (too early) is unchanged at 3115.20 and USDBRL has just turned higher at 3.7246 +.0080 +.22%. Bond futures are higher and providing support for metals which are higher. Equities and crude are lower while softs are higher.
Activity will of course be dominated by option expiration anticipations and spreads. Yesterday’s total volume was 100,811 lots with 84,067 lots s spreads. The March volume consisted of only 25% of outright trading. Expect more of the same.