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FED FUNDS FUTURES

BLOCK, Feb Buy

OPTIONS

Larger FX Option Pipeline

DOLLAR
DOLLAR: DXY is steady at 97.64. WTI last trades ~$0.30 higher, with gold unch.
- BBG cited sources who said that U.S. President Trump's legal team has
investigated options of removing Jerome Powell as Fed Chair. Elsewhere,
yesterday brought headlines stating that the U.S. and China are set to resume
trade talks, while their respective Presidents will meet at next week's G20.
- Having edged lower through yesterday's Asia-Pac session, the dollar index
rallied in the European morning as dovish comments from ECB Pres Draghi damaged
EUR. As a reminder, Draghi said that rate cuts remain in the ECB's toolkit,
while additional stimulus may be needed if outlook fails to improve. DXY then
gyrated through the rest of the day, posting a knee-jerk spike lower on
headlines re: demoting Powell.
- Bears look to the 50-DMA & 21-DMA, located at 97.51 & 97.43 respectively.
Bulls target the May 3 peak at 97.80, ahead of the psychological 98.00 barrier.
- U.S. focus today turns to the FOMC monetary policy decision & subsequent
presser with Fed Chair Powell, with markets setting the Fed a particularly high
bar to avoid disappointment.