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BTP TECHS

(Z1) Bearish Focus

GILT TECHS

(Z1) Sharp Slide Extends

ASIA FX

Baht Worst Performer On Negative Day

SCHATZ TECHS

(Z1) Gains Considered Corrective

BOBL TECHS

(Z1) Outlook Remains Bearish

DOLLAR
DOLLAR: DXY has eased 7 pips, moving away from yesterday's post-FOMC highs, and
last sits at 97.62. WTI and gold are unchanged on the day.
- The dollar index declined through yesterday's European session, posting a ~12
pip leg lower pre-WMR fix on the back of a softer than exp. ISM m'fing print.
- Yet, main focus fell on the FOMC MonPol decision, which saw a 5bp cut to the
IOER. DXY extended losses as a result, touching the worst levels in two weeks.
- However, subsequent press conference with Fed Chair Powell allowed DXY bulls
to breathe a sigh of relief. Powell stressed that the FOMC does not see a strong
case for rate move either way and called the IOER adjustment a "technical"
rather than policy based one. He poured some cold water on worries re: inflation
slowdown and highlighted moderating downside risks to the outlook.
- DXY bears look for a dip through the 21-DMA at 97.41, as the level has not
been breached since late March. Below would expose yesterday's low of 97.15. The
initial topside target is provided by 97.73, where the index peaked yesterday.
- U.S. focus today turns to domestic durable goods & factory orders, as well as
nonfarm productivity data.