STIR: Hawkish Fedspeak Supports Powell’s Warning On Dec Cut
* Today's US front rates underperformance has been supported rather than solely driven by a select...
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SOFR OPTIONS: BLOCK: Dec'25 SOFR Conditional Curve Steepener
- 8,000 0QZ5 97.12/97.50 call spds vs. 3QZ5 96.87/97.25 call spd, 1.5 net - conditional curve steepener at 1334:07ET
US: FED Reverse Repo Operation - New Multi Year Low
With October underway - RRP usage falls to the lowest level since early April 2021 this afternoon: $10.179B with 15 counterparties, down from $49.071B Tuesday. Compares to the year's high usage of $460.731B on June 30.
GBPUSD TECHS: Approaching Pivot Resistance
- RES 4: 1.3789 High Jul 1 and key resistance
- RES 3: 1.3726 High Sep 17
- RES 2: 1.3661 High Sep 18
- RES 1: 1.3537 High Sep 23 and a pivot level
- PRICE: 1.3476 @ 16:27 BST Oct 1
- SUP 1: 1.3324 Low Sep 25 and the bear trigger
- SUP 2: 1.3282 Low Aug 6
- SUP 3: 1.3254 Low Aug 4
- SUP 4: 1.3144 38.2% retracement of the Jan 13 - Jul 1 bull cycle
The bear cycle in GBPUSD that started Sep 17, remains in play and the latest bounce - for now - appears corrective. Initial key resistance to watch is 1.3537, the Sep 23 high and a pivot level. A break of this hurdle would signal a potential reversal. Recent weakness resulted in a break of a trendline drawn from the Aug 1 low. Note too that 1.3333, the Sep 3 low and a key support, has been pierced, opening 1.3282 next, the Aug 6 low.
