Morning Brew June 12 2025

Good morning,

Trump`s “great”  deal with China fails to inspire traders and worries about the middle East also caused risk off sentiment. The lower than expected CPI reading weighed on the USD but did little else.

S&P and Nasdaq100 closed slightly negative in decent volumes of 18 billion shares in the US, this morning the US 500 is 6007, the UN Tech 100 NAS 21800 and the US 30 42740. The GER 40 fell below the 24k

EURUSD rose past the 1.15 with the 1.1550760 area the next resistance – the USD Index is trading at 98.38. If the weakening USD continues, we may test the April lows… USDJPY is 143.90 and GBPUSD is at 1.3580.

Gold surpassed the euro as the second largest global reserve asset at market prices last year, the European Central Bank said as the precious metal rose to 3370 yesterday, Silver attempted a break lower yesterday but found buyers at 36. Platinum remains the star of the month with a 40% annual gain at 1270.

The economic agenda is fairly thin today, the UK GDP, U PPI and the usual Thursday data would have to be a real outlier to have significant market impact.

Risk stems in

• National guard in US cities. Pictures of military on US streets is not good for consumer sentiment.
• Middle East tensions are rising as the US is pulling staff out of the area after Iranian threats.
• There are little details on the trade agreement between the US and China, also it still needs approval.

 Also, we are heading into a very busy next week with the

• G7 meeting in Canada attended by DJT
• Key economic data
• rate decision including the US, Switzerland, Japan and the UK
• Quadruple witching Friday

For the superstitious, tomorrow is Friday the 13^th

Trade safely.

- Thursday, June 12

  - Economic Events:
    - UK GDP
- US Producer Price Index (PPI, May)
    - Initial Jobless Claims (latest week)
    - 30-Year Bond Auction
  - Earnings Releases:
    - Adobe,

- Friday, June 13

  - Economic Events:

- EU Trade Balance
- US Housing Starts and Building Permits (May)
    - University of Michigan Consumer Sentiment (preliminary)
    - Michigan 5-Year Inflation Expectations (preliminary)