STIR: FED Reverse Repo Operation

Uptake of the New York Fed's overnight reverse repo facility fell $83B to just under $350B Tuesday, reversing the typical month-end jump (the ON RRP level was closer to $350B prior to the final 3 sessions of August when it jumped to $433B). Today's operation saw 69 counterparties, down slightly from 72 in the previous operation on Aug 30.

• RES 4: 1.3425 1.764 proj of the Jun 27 - Jul 17 - Aug 8 price swing  
• RES 3: 1.3362 1.618 proj of the Jun 27 - Jul 17 - Aug 8 price swing  
• RES 2: 1.3328 76.4% retrace of the Jun 2021 - Sep 2022 bear leg
• RES 1: 1.3200/3266 High Aug 30 / 27 and the bull trigger 
• PRICE: 1.3097 @ 15:32 BST Sep 3
• SUP 1: 1.3089 Low Sep 03
• SUP 2: 1.3041 20-day EMA
• SUP 3: 1.2975 Low Aug 20 
• SUP 4: 1.2918 50-day EMA

A short-term bearish condition in GBPUSD remains intact and the pair is trading again at lows. The latest pullback still appears to be a correction and firm support to watch lies at 1.3041, the 20-day EMA. A clear break of this EMA would signal scope for a deeper retracement. Moving average studies are in a bull-mode position, highlighting a rising M/T trend condition. A resumption of gains would open 1.3328, a Fibonacci retracement.               

Ukrainian President Volodymyr Zelenskyy has told NBC News that Ukraine intends to hold Russian territory captured during its multi-week incursion into the Kursk Oblast "indefinitely", as it tries to force Russia into negotiations to end the war.

• NBC reports that Zelenskyy said: "We don’t need their land. We don’t want to bring our Ukrainian way of life there," but Ukraine will hold the territory as it is integral to his “victory plan” to end the war. Zelenskyy said: “For now, we need it,” adding that he will present the proposal to international partners like the United States."
• Zelenskyy added in the interview that he couldn't discuss whether Ukraine plans to try and seize more Russian territory and confirmed again that the Biden administration was not aware of the operation, as it was kept as a close-guarded secret even inside Ukraine.
• Zelenskyy's comments come as the war endures a period of intense fighting on the eastern front that could re-shape the battlefield ahead of an expected lull during the autumn and winter.
• The New York Times notes that the death toll in the Ukrainian town of Poltava, from a Russian ballistic missile attack earlier today, "has climbed to 51, according to Ukraine’s prosecutor general’s office," making it one of the deadliest attacks of the war.