US TSYS/OVERNIGHT REPO: ON RRP Takeup Remains Well Below $100B
Overnight Reverse Repo facility takeup at the New York Fed was basically unchanged Wednesday vs the prior session, at $57.2B (vs $57.5B).
- This marked a fresh 4-month low (Apr 16's tax date saw $54.8B takeup) but it's now the 8th session in the past 9 below $100B, for the first time since February.
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GBPUSD TECHS: Pierces The 50-Day EMA
- RES 4: 1.3835 High Oct 20 2021
- RES 3: 1.3800 Round number resistance
- RES 2: 1.3681/3789 High Jul 04 / 01 and the bull trigger
- RES 1: 1.3588 20-day EMA
- PRICE: 1.3459 @ 15:49 BST Jul 14
- SUP 1: 1.3452 Low Jul 14
- SUP 2: 1.3419 Trendline support drawn from the Jan 13 low
- SUP 3: 1.3371 Low Jun 23
- SUP 4: 1.3335 Low May 20
A softer short-term tone in GBPUSD remains in place and the pair is trading lower once again, today. Price has pierced a key support around the 50-day EMA, at 1.3481. A clear break of this level would undermine a bull theme and signal scope for a deeper retracement. Note that a trendline support - drawn from the Jan 13 low - lies at 1.3419. A break of this support would strengthen a bearish threat. Initial firm resistance to watch is 1.3681, the Jul 4 high.
US: FED Reverse Repo Operation
RRP usage rises to $217.841B this afternoon from $181.637B Friday, 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.
SOFR OPTIONS: Green Dec/Blue Dec Conditional Curve Steepep
- +10,000 2QZ5 97.00/97.50 call spds vs. 3QZ5 96.75/97.25 call spd, 0.0 net/steepener
