OPTIONS: Larger FX Option Pipeline
- EUR/USD: Oct21 $0.9700(E1.5bln), $0.9800(E1.8bln), $0.9850(E1bln); Oct24 $0.9750(E1.1bln), $0.9800-20(E1.6bln), $0.9840-50(E1.6bln), $0.9875(E1.0bln); Oct25 $0.9745-50(E1.1bln)
- GBP/USD: Oct25 $1.1435(Gbp1.0bln)
- USD/JPY: Oct21 Y147.50-55($1.1bln); Oct24 Y150.00($1.3bln); Oct25 Y150.00($1.1bln)
- AUD/USD: Oct24 $0.6592-10(A$1.2bln)
- USD/CNY: Oct21 Cny7.1000($2.3bln)
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US: FED Reverse Repo Operation
NY Fed reverse repo usages climbs to $2,217.542B w/ 101 counterparties vs. $2,186.833B prior session. Record high still stands at $2,329.743B from Thursday June 30.
NY Federal Reserve/MNI
GBPUSD TECHS: Bearish Price Action
- RES 4: 1.2004 Low Aug 5
- RES 3: 1.1843 50-day EMA
- RES 2: 1.1783 High Aug 29
- RES 1: 1.1590/1738 High Sep 14 / 13 and key resistance
- PRICE: 1.1407 @ 15:58 BST Sep 19
- SUP 1: 1.1351 Low Sep 16
- SUP 2: 1.1324 1.50 proj of the Jun 16 - Jul 14 - Aug 1 price swing
- SUP 3: 1.1300 Round number support
- SUP 4: 1.1248 1.618 proj of the Jun 16 - Jul 14 - Aug 1 price swing
GBPUSD remains soft. The reversal lower last week reinforces bearish conditions and confirmed the end of the recent corrective bounce. A bearish sequence of lower lows and lower highs highlights a broader bear cycle. Note that moving average studies are in a bear mode set-up too. Key support at 1.1412, Mar 20 2020 low has been cleared. This strengthens bearish conditions and opens 1.1324. Key resistance is 1.1738, Sep 13 high.
BRAZIL: Meirelles Talks Up Successes Of Previous Lula Admin After Endorsement
The campaign of former President Luiz Inácio "Lula" da Silva has been given a significant boost by the endorsement of former Minister of the Economy and Central Bank chief Henrique Meirelles.
- In a Twitter thread following his endorsement of Lula, Meirelles says: "I worked in the [Lula administration] for eight years, from 2003 to 2010, invited to command the Central Bank. During this period, more than ten million jobs were created in Brazil. That's an unquestionable fact."
- "Forty million people left the poverty line, which changed the country's life for a long time. We had an average growth of 4% in the country, which is relevant – and the last year in 2010 was more than 7%."
- Meirelles also says that Lula's administration successfully transitioned from a period of low FX reserves and laid the groundwork for a successful navigation of the 2008 financial crisis.
- "Well, I was fortunate to sign the check as president of [Central Bank], paying the debt and bid farewell to the IMF [...] We managed to accumulate almost $300 billion in reserves [and] we successfully face[d] the 2008 crisis, when Brazil had the smallest and shortest recession in the world."
