USD declined yesterday despite better than expected PMI numbers illustrating the economy being on solid footing stateside. The sell-off on the dollar came about after Fed governor Michelle Bowman said she would support a July rate cut if inflation remained subdued. Her remarks echo dovish comments from fellow Fed member Waller on Friday. Market sentiment in general remained positive with equities climbing back to last week's levels and oil prices finished lower.
UK PMI from earlier in the day helped sterling in the morning after the manufacturing number came in marginally higher than expected.
Read more about the Federal Reserve's interest rate decisions here -When is the next Fed interest rate decision?
*Daily move - against G10 rates at 7:00 am, 24.06.25
** Indicative rates - interbank rates at 7:00 am, 24.06.25
Markets are risk-on this morning after Donald Trump declared a ceasefire between Iran and Israel. Benjamin Netanyahu has said he will agree to the truce and will respond forcefully if there is any breach. Oil prices continued to plunge, European equities opened higher with US futures also pointing to a higher start and the dollar dropped across the board. However, only a moment ago the Israel Defence Force said it has identified missile launches from Iran towards Israel. Initial market moves have eased off as a result.
Fed Powell will be in focus in the afternoon with his semiannual policy testimony at 3pm, where we expect him to echo his comments from last weeks Fed meeting.
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