Japan Eco Minister: No change to Japan’s stance of demanding elimination of US tariffsThe US House passes the Trump tax bill and sends it to the SenateECB’s Holzmann: The Euro’s importance as a global currency is set to increaseECB’s Vujcic: Eurozone growth positive but lowRBA’s Hauser: Australian exporters upbeat about resilience of China demandUK May flash services PMI 50.2 vs 50.0 expectedGermany May Ifo business climate index 87.5 vs 87.4 expectedEurozone May flash services PMI 48.9 vs 50.3 expectedGermany May flash manufacturing PMI 48.8 vs 48.9 expectedFrance May flash services PMI 47.4 vs 47.5 expectedFrance May business confidence 97 vs 99 expectedOPEC+ discusses another 411K B/D output hike in JulyBoJ Noguchi: Recent rise in long-term rates likely won’t have impact on bond taper planJapan’s Mimura says Japan, US did not discuss FX levels at finance ministers’ meetingNorth Korea fires multiple cruise missiles toward East Sea
It’s been a more lively session in terms of data releases as we got the Flash PMIs for Eurozone and the UK. The data was overall disappointing but there were some glimpse of improvement.
The main event was the US House vote on Trump’s tax bill which passed and sent long term Treasury yields to new highs. The US 30yr yield is now close to the 2023 high. US indices reacted positively to the news but eventually gave everything back. The US Dollar weakened.
In the American session, the focus will switch to the US Flash PMIs where business sentiment and inflation details will be scanned. The market is pricing 51 bps of easing for the Fed in 2025 but that could be lowered with good economic data or lack of progress on inflation.
This article was written by Giuseppe Dellamotta at www.forexlive.com.