EURGBP TECHS: Bull Cycle Remains Intact
- RES 4: 0.8624 High Apr 21
- RES 3: 0.8592 61.8% retracement of the Apr 11 - May 29 downleg
- RES 2: 0.8566 High Apr 24
- RES 1: 0.8547 High Jun 12
- PRICE: 0.8505 @ 16:26 BST Jun 13
- SUP 1: 0.8476/8445 Low Jun 12 / 50-day EMA
- SUP 2: 0.8407/8356 Low Jun 4 / Low May 29 and the bear trigger
- SUP 3: 0.8327 1.382 proj of the Apr 11 - 16 - 21 price swing
- SUP 4: 0.8316 Low Mar 28 and a key support
A bullish theme in EURGBP remains intact and the cross traded sharply higher Thursday. The latest recovery has resulted in a break of the 50-day EMA. The subsequent bullish follow through, highlights a stronger reversal. This signals scope for a climb towards 0.8592, a Fibonacci retracement. Support to watch lies at 0.8445, the 50-day EMA. Clearance of this level would highlight a possible reversal.
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US: FED Reverse Repo Operation
RRP usage climbs to $165.024B this afternoon from $144.214B yesterday, total number of counterparties at 36. Usage had fallen to $54.772B last Wednesday, April 16 -- lowest level since April 2021. Conversely, usage had surged to the highest level since December 31, 2024 on Monday, March 31: $399.167B.
OPTIONS: Varied Sonia/Euribor Structures Trade Wednesday
Wednesday's Europe rates/bond options flow included:
- ERZ5 98.0625/97.9375/97.8125p fly, bought for 2 in 3k
- ERH6 98.0625/97.9375/97.8125p fly 1x2.5x1.5p fly, bought for flat in 4.8k
- SFIM5 95.90/95.85/95.80p ladder, bought for 1.5 in 3.88k
- SFIQ5 95.90/96.00/96.40/96.50c condor, bought for 6.5 in 5k
- SFIU5 96.20/96.35 call spread paper paid 3.5 on 12K
US TSY FUTURES: BLOCK: Jun'25 2Y Buy
- +7,400 TUM5 103-07.5, buy through 103-07.38 post time offer at 1328:57ET, DV01 $270,000.
- The 2Y contract trades 103-07.62 last (-1.62).
