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AUSSIE 10-YEAR TECHS

(Z1) Shallow Bounce

USDCAD TECHS

Trend Needle Still Points North

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AUDUSD TECHS

Slide Accelerates

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EURJPY TECHS

Still Looking For Weakness

Cable Holds Gains as Month End Looms

CABLE
MNI (London)

Reaction to Fed Powell's speech at Jackson Hole saw cable mark a fresh YTD high of $1.3284 in reaction to the dovish comments, but market quickly reversed on the sharp bounce in UST yields. Cable dropped to $1.3162, recovered to $1.3233 before it settled around $1.3200 into the close. Rate touched an early low in Asia of $1.3186 before the USD came under fresh pressure which allowed rate to rally to $1.3273. Rate eased to $1.3255 ahead of Europe before fresh demand began to emerge in the new session. Rate currently trades around $1.3265. Month-end on Monday, though that is a bank holiday in the UK. Prelim models have suggested that sterling to benefit from month-end USD sales which could see rate buoyed through the day. Resistance now seen at $1.3273 ahead of Thursday's YTD high of $1.3284. A break here brings the $1.3300/15 area into play. Technical traders have suggested that this area may prove tough to break, at least on initial challenges, if rate can move above seen opening potential toward $1.34/1.35. Support $1.3180, $1.3160/50.

MNI London Bureau | +44 203-586-2231 | john.webb@marketnews.com
MNI London Bureau | +44 203-586-2231 | john.webb@marketnews.com