China’s gold exchange expands offshore with new contracts and vault in Hong KongJapan 2-year JGB auction sees strongest demand since JanuaryFederal Reserve speakers Thursday include Barkin, Hammack and KashkariUS dollar still losing ground, EUR/USD pops above 1.1710Foreign investors became net sellers of Japanese equities for the first time since MarchChina NDRC says Confident in minimizing uncertainty and negative impact of external shocksIran leader Ayatollah Ali Khamenei not been seen publicly or heard from in nearly a week.European Central Bank speakers Thursday include Schnabel, de Guindos and LagardeChina’s finance minister says the world economic recovery faces unprecedented challengesChina’s Premier Li: China will take forceful steps to boost consumptionPBOC sets USD/ CNY reference rate for today at 7.1620 (vs. estimate at 7.1561)Japan’s Akazawa says Japan cannot accept 25% auto tariffsBank of England Governor Bailey and Deputy Breeden are speaking Thursday, Rosen alsoUS dollar still dribbling lower. ICYMI WSJ: Trump undermining Federal Reserve Chair PowellJP Morgan expects the USD dollar index, DXY, to fall by 5.7% in the next 12 monthsUSD falling away a little on the Trump ” bid to undermine Fed Chair Powell” WSJ reportWall Street Journal: Trump considers naming next Fed chair early – bid to undermine PowellDeutsche Bank brings forward RBA rate cut to JulyNomura sees Treasury rally ahead on rising growth fearsGoldman Sachs sees double-digit upside for Chinese stocks, targets 4,600 on CSI 300Hong Kong’s central bank intervening to support the Hong Kong dollarReports Iran not able to take uranium from nuclear enrichment facilities pre/post strikesUS Feds order mortgage providers to “count cryptocurrency as an asset for a mortgage”J.P. Morgan tip a Federal Reserve rate cut in DecemberTrump’s Mid East envoy Witkoff says its a red line if Iran tries nuclear enrichment againCIA confirms credible intelligence indicates Iran’s nuclear program severely damagedForexlive Americas FX news wrap: US dollar stays on the defensiveUS stock markets finish nearly flatTrade ideas thread – Thursday, 26 June, insightful charts, technical analysis, ideas
The US dollar lost more ground today:
EUR/USD hit levels last seen in September 2021
USD/CNY dropped to lows not seen since November last year
USD/CHF fell to its lowest level since 2011
The dollar weakened broadly, with AUD, NZD, JPY, GBP, and CAD all also firmer. Gold gained against the greenback.
The dollar has been trending lower almost throughout the first half of the year, down nearly 10%—its worst H1 performance in roughly four decades.
Today’s continuation move was catalysed by a Wall Street Journal piece with the blunt headline:
“Trump Considers Naming Next Fed Chair Early in Bid to Undermine Powell.” (gated, I’ve a summary in the points above )
The report said Trump may accelerate the naming of a successor to Fed Chair Jerome Powell—potentially as early as this summer—which could allow a chair-in-waiting to begin shaping investor expectations well ahead of Powell’s term ending.
There was a brief retracement in FX after Japan’s Akazawa said Tokyo “cannot accept” a proposed 25% US auto tariff, but that blip didn’t last.
Elsewhere, Reuters reported that the US is allowing ethane to be loaded and shipped to China—initially a supportive development for risk sentiment. However, the catch is that it can’t yet be unloaded at Chinese ports. Presumably, someone’s working on a solution.
Finally, in Japan, a 2-year JGB auction drew the strongest demand since January, with a bid-to-cover ratio of 3.90, up from 3.77 in May. The average yield came in at 0.729%, with the lowest accepted at 0.735%. The auction tail widened slightly, suggesting investors are still adjusting their expectations around short-end policy risk.
This article was written by Eamonn Sheridan at www.forexlive.com.