UK STIR STRIP: choppy trade either side of parity

Short Sterling futures flipping narrowly either side of the unchanged line in early trade, with little in the way of clear direction or conviction after last week’s rather mixed data and BoE commentary that left rate expectations pretty much where they were. Perhaps some further clarity and positioning will be forthcoming from speeches scheduled ahead, including Ramsden after the close today and the TSC hearing on November’s QIR on Tuesday when Cunliffe, McCafferty, Saunders and Vlieghe are all slated to appear. Wednesday’s Budget will also be watched closely for any policy implications of course, while breaking and evolving Brexit news is the other major theme. On that note, latest talk of a higher divorce settlement offer to be tabled at December’s key EU summit may temper safe-haven buying in Gilts when they return to Liffe, but the 10 year debt future is still seen opening firmer vs last Friday’s 124.72 settlement given a gap up in Bunds and USTs on the collapse of German coalition Government talks.

20 Nov 2017 - 07:48- - Source: ransquawk

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