ForexLive European FX news wrap: SNB cuts to 0%, BOE stays on hold as anticipated
The US market were closed today in observance of Juneteenth. Meanwhile, the SNB cut rates, the BOE kept rates unchanged and both happened less than 24 hours from the US Fed keeping rates unchanged.
With bonds and stocks closed (although the e-mini S&P did move lower by 0.93%), the focus remained on the Israel-Iran conflict and the potential for US involvement.
The conflict did heat up with some strikes from Iran being felt in Israel. A hospital was hit. There were casualties and other destruction. Crude oil prices moved toward $76, but backed off (at $73.85).
The question that continues to be asked is “Will the US be dragged into the conflict?”.
Trump has been taking the backseat so far and continued to do that – at least through his WH Press Secretary who at first tried to funnel the conversation toward immigrations successes and then to the big, beautiful bill.
However, questions led to the topic of interest, and the response – the direct message – from the President was “based on the fact that there is a substantial chance of negotiations that may or may not take place with Iran in the near future, I will make my decision whether or not to go within the next two weeks”
Breaking that direct statement down, the Pres. said…
Generally speaking, the comment was a big nothing burger full of ambiguity..
The Juneteenth holiday gave the President, the opportunity to sit this day out.. Even on Truth Social, he was quiet. He posted about extending TikTok closure by 90-days (it ain’t going to close. He likes surfing it) and spoke about his 56% approval rating.
Anyway, European allies will be speaking with Iranian officials on Friday calling for peace and negotiation. Trump said yesterday, Iran wanted to talk. Iran said they did not say that.
Buckle up. Tomorrow will likely be a bigger day, but like the Fed and their apprehension to do anything given the uncertainties, Trump I ironically leaning toward doing nothing given the uncertainties from jumping in the pool of the Iran/Isreal conflict.
Looking at the US dollar, it is closing mixed vs the major currencies:
European shares closed lower:
Gold is unchanged at $3370.40. Crude oil is up $0.38 at $73.88 after trading as high as $75.70. Bitcoin is unchanged.
