FED: US TSY 9Y-8M TIPS AUCTION: NON-COMP BIDS $35 MLN FROM $19.000 BLN TOTAL

A new survey from Gallup has found that, “Americans continue to see the Republican Party as better than the Democratic Party for protecting the U.S. from international threats, 48% to 41%, though the margin has narrowed since last year.” 

• The survey, which began before the government shutdown and the Israel-Hamas ceasefire deal, “also finds the GOP has lost its advantage as the party better for keeping the country prosperous.
• “In both cases, Republicans’ weaker position is mainly the result of fewer Americans than a year ago preferring the Republican Party for these responsibilities, not because of increased confidence in the Democratic Party to handle them.”

Figure 1: “Looking ahead for the next few years, which political party do you think will do a better job of ...?”

Source: Gallup

RRP usage recedes to $4.699B with 10 counterparties this afternoon from $5.931B Monday. Compares to $3,516B on Tuesday, Oct 13 (lowest level since early April 2021) & this year's high usage of $460.731B on June 30.

• RES 4: 1.3613 76.4% retracement of the Sep 17 - Oct 14 bear leg    
• RES 3: 1.3544 61.8% retracement of the Sep 17 - Oct 14 bear leg 
• RES 2: 1.3527 High Oct 1 and a pivot level
• RES 1: 1.3487 50.0% retracement of the Sep 17 - Oct 14 bear leg 
• PRICE: 1.3382 @ 15:21 BST Oct 21
• SUP 1: 1.3317/3249 Low Oct 15 / 14 and the bear trigger
• SUP 2: 1.3220 0.764 proj of the Sep 17 - 25 - Oct 1 price swing 
• SUP 3: 1.3142 Low Aug 1 and a key support
• SUP 4: 1.3041 Low Apr 14           

Recent gains in GBPUSD appear corrective - for now. However, price has recently pierced resistance around the 50-day EMA, currently at 1.3448. A clear break of this average would highlight a stronger reversal and expose resistance at 1.3527, the Oct 1 high and a pivot level. Clearance of this hurdle would be bullish. On the downside, key support and the bear trigger is 1.3249, the Oct 14 low.