investingLive European FX news wrap: Markets consolidate as US CPI looms
- US May NFIB small business optimism index 95.3 vs 96.0 expected
- USD/JPY holds above the 160.00 mark as traders look beyond the imminent BoJ rate hike
- Goldman Sachs no longer sees the Fed cutting interest rates this year
- Of cryptocurrencies and collectibles
- Indian Rupee maintains the bearish bias amid prolonged US-Iran stalemate, hawkish Fed risk
- What are the main events for today?
- German industrial production rebounds in April on higher energy, construction output
- FX option expiries for 9 June 10am New York cut
- BOJ reportedly set to raise short-term policy rate to 1% next week
- A quick US-Iran catchup ahead of European trading today
- US president Trump says he may have an “idea" on Iran deal within a few days
- Is the crypto market rebounding? Today’s Ethereum analysis
It’s been a very boring session with no market-moving data or news releases. The only notable news was the Nikkei report confirming that the BoJ is going to hike interest rates to 1% next week and pause bond tapering from next fiscal year. There was little to no reaction in the JPY given that a rate hike was already priced in and the tapering pause removes the hawkish flavour of the rate hike.
Early in the session, we got Trump touting “very good chances" of reaching a deal with Iran in the “next two or three days". CNN noted that Trump has claimed an Iran deal to be close at least 37 times already. I think it’s unlikely to see a deal anytime soon after the latest escalation with Israel, so the stalemate might extend much further.
In the markets, we’ve been seeing a positive mood with risk assets getting bid, the US dollar losing ground and oil prices extending losses following yesterday’s Israel-Iran ceasefire. I think we’re going to consolidate into the US CPI report tomorrow as that could either exacerbate or alleviate the hawkish Fed fears.
This article was written by Giuseppe Dellamotta at investinglive.com.