This is the highest level of net purchases since 1971 when Nixon closed the gold window. And it’s a 75% increase from 2017. This was not random, it was strategic.
Archives of “June 2019” month
rssEurope dash for Trash CCC-BB (lower panel)
Eurozone June flash manufacturing PMI 47.8 vs 48.0 expected
Latest data released by Markit – 21 June 2019
- Prior 47.7
- Services PMI 53.4 vs 53.0 expected
- Prior 52.9
- Composite PMI 52.1 vs 52.0 expected
- Prior 51.8
The overall prints here are more-or-less within expectations as the composite reading risses to a seven-month high. That said, aside from a minor bump in services, manufacturing activity remains more or less unchanged to May in the euro area as a whole so there isn’t much in the “big picture” data here to suggest a meaningful rebound in economic conditions.
EUR/USD holds steady still at 1.1307 currently after being buoyed by the French and German releases earlier in the day.
Trump reportedly gave overnight warning of an imminent attack on Iran
Reuters reports
- Says that Trump’s message to Iran said “we don’t want war but talks”
- Also gave Iran a deadline to start talks
The report notes that Trump gave Iran “a limited period of time” to respond to the message and Iran’s immediate response was a stark warning over “regional and international consequences” if there was any US military action. It is said that Iran’s supreme leader was also against “any kind of talks” with the US at this point in time.
Yup, as such, expect the tensions to rage on between the two countries over the coming days/weeks and that will remain a risk for markets – oil in particular.
China press – Impact of further US tariffs on Chinese economy likely limited
People’s Daily newspaper piece written by the head of the banking and insurance regulator, Guo Shuqing
- impact of additional U.S. tariffs on the Chinese economy will be very limited
- fluctuations in the yuan exchange rate were normal in the short term
- over a longer horizon the currency would not continue to lose value given China’s economic fundamentals.
Huh. OK then.
Rumours of explosions at an Iran nuclear plant (rumours folks, unconfirmed)
There are reports an explosion has been heard near the Bushehr nuclear plant in Iran.
Rumour only ladies and gentlemen. With all the tensions surrounding US / Iran relations this may spread. Hopefully its false, nuclear plants are not to be messed with.
I’ll keep us all updated. Currencies would likely see flows into yen and out of risk on this.
Bushehr Nuclear Power Plant is 17 kilometres southeast of the city of Bushehr:
Trump Tweets first Double Tap
China and North Korea agree they need to work together
Kim Jong Un and Xi Jinping agree North Korea and China need to work together in face of changing international environment
- Kim Jong Un and Xi Jinping agreed to have close strategic communication and deepen cooperation in various fields
KCNA (NK state media) report on the meeting between the leaders of NK and China).
I’m gonna guess that the subtext to this is they both have a common enemy … or no?
How to tell its time to wash your hands.
If you still have your ‘Dow 10,000’ hat you might want to rejig it for Bitcoin
The weakness in the jellyfish at the Fed USD is helping to contribute to the performance of BTC
Along with gold and everything else of course.
BTC is up through 9500 as US markets up for the session:
USD is not the only driver – it had put in a multi month consolidation
Iran says US unmanned aircraft entered its airspace unlawfully
Iran’s U.N. Ambassador in a letter to the UN Security Council:
- Says the US unmanned aircraft entered into Iranian airspace despite repeated radio warnings in ‘a blatant violation of international law’
- Calls on international community to demand the United States end ‘its continued unlawful and destabilizing measures’ in the region
- Says Iran does not seek war, but reserves right to take all appropriate measures against any hostile act violating its territory
ps. There is chatter/rumour about the US is escalating matters by limiting the fishing zone available to Iran (this in response to the drone downing)
This geopol tension is being subsumed by the dovish Fed. But do stay aware of this.