Following reports of a ceasefire agreement between Israel and Iran, the elimination of “war-time dollar buying” is prioritized.

【6/24Market Overview

Tokyo time, when President Trump stated that “a complete and comprehensive ceasefire between Israel and Iran has been agreed,” the unwinding of yesterday’s “safe-haven dollar buying” took the lead. The dollar/yen fell to as low as145.05yen. Regarding the Israel-Iran conflict, there were moments of mixed information, such as Iran briefly denying a ceasefire, but subsequently both sides were reported to have agreed to a ceasefire plan. In European hours, a statement by Prime Minister Netanyahu of Israel that “they agreed to ceasefire with Iran” was reported, and the dollar/yen fell to145.00yen. After the ceasefire agreement, following Israel Defense Forces’ announcement that missiles fired from Iran toward Israel were confirmed, the dollar/yen recovered to145.41yen, but then the dollar/yen moved within a narrow band around145.00yen. During New York time, as the unwinding of safe-haven dollar buying progressed,6month US Consumer Confidence Index missed expectations. PowellFRBChairman Powell testified before the U.S. House Financial Services Committee that “if inflation cools and the labor market softens, there is a possibility of rate cuts coming earlier,” and that “inflation might not be as strong as expected,” remarks that, along with a drop in the 10-year Treasury yield, led to a broad dollar decline, and the dollar/yen temporarily fell to144.51yen.

【6/25Market View