Forexlive European FX news wrap: The US House passes Trump’s tax bill

• Japan Eco Minister: No change to Japan’s stance of demanding elimination of US tariffs
• The US House passes the Trump tax bill and sends it to the Senate
• ECB’s Holzmann: The Euro’s importance as a global currency is set to increase
• ECB’s Vujcic: Eurozone growth positive but low
• RBA’s Hauser: Australian exporters upbeat about resilience of China demand
• UK May flash services PMI 50.2 vs 50.0 expected
• Germany May Ifo business climate index 87.5 vs 87.4 expected
• Eurozone May flash services PMI 48.9 vs 50.3 expected
• Germany May flash manufacturing PMI 48.8 vs 48.9 expected
• France May flash services PMI 47.4 vs 47.5 expected
• France May business confidence 97 vs 99 expected
• OPEC+ discusses another 411K B/D output hike in July
• BoJ Noguchi: Recent rise in long-term rates likely won’t have impact on bond taper plan
• Japan’s Mimura says Japan, US did not discuss FX levels at finance ministers’ meeting
• North 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.