U.S. Productivity Preview U.S. Productivity Preview: The first release on Q4 productivity is out on Thursday and is expected heave the headline down 3.5% (median -1.8%) for the quarter following a 2.2% headline in Q3. Unit labor costs are expected to be up 4.5% (median 3.8%) from 1.8% in Q3.
Euro$ interest rate option: call spread positioning Euro$ interest rate option: call spread positioning included a block trade on 10k in 93/95 calls spreads at 5, say sources. This follows a mostly bullish session on the underlying futures, with the March 2016 contract flat at 99.38, but the deferreds still 1-6 ticks higher, though below earlier highs as the rally cools off a tad. Stocks are still sharply lower with the NASDAQ off 1.50% again.
FX Action: More dollar weakness FX Action: More dollar weakness followed the softer Markit services PMI, resulting in EUR-USD printing the 1.1000 handle, and USD-JPY crash through 119.00 to 118.64 lows. It remains to be seen if the 10:00 EST non-manufacturing ISM release will corroborate.