FOREX: Accelerated Fed Timeline Undermines Week's USD Rally
* A rush forward in Fed rate cut expectations for September (and through the rest of 2025) followe...
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US TSY FUTURES: BLOCK: Sep'25 2Y Sale
- -5,000 TUU5 103-27.75, sell through 103-27.88 post time bid at 1359:20ET, DV01 $192,000.
- The 2Y contract trades 103-27.75 last (-.88)
US: FED Reverse Repo Operation
RRP usage slips to $237.307B this afternoon from $245.530B yesterday, total number of counterparties at 45. Usage had fallen to $54.772B on Wednesday, April 16 -- lowest level since April 2021 - compares to yesterday's (July 1) $460.731B highest usage since December 31.
EURGBP TECHS: Bull Cycle Accelerates
- RES 4: 0.8781 2.236 pro of the Mar 3 - 11 - 28 price swing
- RES 3: 0.8738 High Apr 11 high and a key resistance
- RES 2: 0.8694 High Apr 14
- RES 1: 0.8670 High Jul 02
- PRICE: 0.8655 @ 16:21 BST Jul 2
- SUP 1: 0.8521/8486 20- and 50-day EMA values
- SUP 2: 0.8459 Low Jun 11
- SUP 3: 0.8407 Low Jun 4
- SUP 4: 0.8356 Low May 29 and the bear trigger
The trend condition in EURGBP remains bullish and this week’s gains together with today’s acceleration, reinforce current conditions. Moving average studies are in a bull-mode position - highlighting a dominant uptrend. 0.8648, 76.4% of the Apr 11 - May 29 downleg, has been pierced. A continuation higher would open 0.8738, the Apr 11 high and a key resistance. Support to watch lies at 0.8521, the 20-day EMA.
