Forexlive European FX news wrap: Israel-Iran ceasefire looks shaky

• Trump: Israel is not going to attack Iran, all planes will turn around and head home
• Trump: Israel has to calm down, I have to get Israel to calm down
• Trump: Israel, do not drop those bombs. If you do, it’s a major violation
• Trump asked about truce breaking said “I don’t think so”
• Fed’s Bostic: No need to cut rates now
• UK June CBI trends total orders -33 vs -27 expected
• BOE’s Greene: A careful, gradual approach on rate cuts continues to be warranted
• PBOC says to increase support for the real economy
• ECB’s Villeroy: The ECB could still cut rates despite oil market volatility
• Iran denies firing missiles at Israel after ceasefire – IRIB
• Germany June Ifo business climate index 88.4 vs 88.2 expected
• Israeli Defence Minister: I instructed the military to respond forcefully to violation
• Israeli military says it identified missiles launched from Iran towards Israel
• Israel PM Netanyahu: Israel achieved Iran war goals
• Trump continues to lambast Powell on rate cuts
• Trump says ceasefire is now in effect, “please do not violate it”
• Iran media says latest missile waves were final salvo before ceasefire took effect
• ECB’s Villeroy says further rate cuts still possible despite present conditions
• Trump continues to laud ceasefire even as Iran missiles lead to casualties in Israel
• China expresses dissatisfaction over EU limits on medical device procurement
• Israeli military says third wave of missiles have been launched from Iran

It’s been a relatively calm session after the rally in risk assets overnight. The main theme is still the Israel-Iran ceasefire but it looks very shaky. In fact, this morning Israel accused Iran of firing two missiles towards Israel after the ceasefire began and promised a retaliation against regime targets in the heart of Tehran. Iran later denied launching the missiles.

Late in the session, Trump delivered lots of comments regarding the ceasefire and the gist of it is that he doesn’t think the ceasefire was violated because both Israel and Iran breached it in the beginning. He sounded very disappointed with Israel and promised to stop them from escalating things further.

The markets didn’t react much to these news but the momentum in risk assets waned nonetheless. In the American session, we have the Canadian CPI, the US Consumer Confidence and Fed Chair Powell Testimony coming up. There will also be a barrage of central bank speakers with the focus being on Fed ones after Waller’s and Bowman’s dovish comments.

This article was written by Giuseppe Dellamotta at www.forexlive.com.