Forexlive Americas FX news wrap 13 Jun: Markets are in flux as Israel and Iran lob bombs\n\n2 min readKey points:Japan PM in call with Trump, reiterated Japan's use on US tariffsThe S&P, NASDAQ and Dow have worst day since May 21Central bank meetings will dominate the economic calendar next weekIsrael warns that Iran will pay a heavy price for its missile attack on populated areasCrude oil futures settle at $72.98Israel military: Identify missiles launched from Iran. Iran's response has begunIsrael Army: We destroyed a Iranian facility for producing uraniumKremlin. Putin tells Netanyahu that nuclear issues must be solved through diplomacyIran's Khamenei: Iranian Armed Forces will leave Israel hopelessIran will not participate in nuclear talks on Sunday with the USBaker Hughes oil rig count -3 at 439Major European indices close lower for the day as a geopolitical risks weigh on sentimentNew York Times: Israel has resumed attacks on IranNetanyahu: US knew of the attack ahead of timeUniversity of Michigan consumer sentiment preliminary for June 60.5 vs 53.5 estimateIran tells UN Security Council they will respond decisively/proportionallyCanada wholesale trade for April - 2.3% versus -0.9% estimateCanada manufacturing sales for April by -2.8% versus -2.0% expectedCanada Q1 capacity utilization rate 80.1% vs 79.8% expectedThe USD has moved higher after Israel's strike on Iran. What next?ForexLive European FX news wrap: Dollar gains as Israel and Iran tensions run highTrump: Iran has perhaps a second chance\n\nThe U.S. dollar moved higher overnight (and coming into the US session), driven by classic flight-to-safety flows following Israel's strike on Iran. However, U.S. yields did not follow the usual script—instead of falling amid geopolitical stress, they moved higher.\n\nThis divergence from the typical Pavlovian response raises questions. It may reflect rising oil prices and the renewed threat of inflation, which can put upward pressure on yields. Alternatively, it could be a technical retracement, with yields rebounding after recently dipping below key benchmarks—4% for the 2-year, 4.5% for the 10-year, and 5% for the 30-year—that had served as rough markers for the yield curve in recent weeks.\n\nOr perhaps it’s something broader: investor fatigue with the constant swings in policy tone from the Trump administration and escalating global tensions. Whatever the reason, markets are behaving less predictably—adding another layer of complexity for traders and policymakers alike.\n\nRegardless of the reason, today yields moved higher.\n\nLooking at the near-closing levels in the US debt market:\n2 year yield 3.952%, +4.6 basis points.5-year yield 4.008%, +4.9 basis points10 year yield 4.408%, +5.2 basis points.30 year yield 4.901%, +5.9 basis points\n\nThe U.S. dollar initially rose on the back of flight-to-safety flows, but those gains began to fade as the day progressed. While the greenback is still closing higher against all major currency pairs, it has pulled back significantly from its intraday highs.\n\nDespite the late-day retracement, a look at end-of-day levels shows the dollar posted gains across the board, finishing stronger versus each of the major currencies.\nEUR 0.38%GBP 0.39%JPY +0.39%CHF +0.15%CAD +0.06%AUD +0.72%NZD +0.96%\n\nFor the trading week, although the USD was higher for the day, it was lower for the week:\nEUR -1.79%GBP -0.26%JPY -0.53%CHF -1.26%CAD -0.70%AUD unchangedNZD -0.06%\n\nUS stocks fell in trading today and that helped to push the major indices negative for the week:\nDow -1.79% for the day and -1.32% for the weekS&P -1.13% for the day and -0.39% for the week.NASDAQ index -1.30% for the day and -0.63% of Week.\n\nLooking ahead, geopolitical tensions between Israel and Iran are expected to keep markets on edge, fueling ongoing uncertainty. At the same time, a packed central bank calendar will shape the direction of global monetary policy, with the Federal Reserve taking center stage on Wednesday.\n\nWhile the Fed is widely expected to keep rates unchanged, the market’s attention will be firmly on the policy statement, economic projections, and the dot plot outlining future rate expectations. This comes on the heels of cooler-than-expected inflation data, which has eased some pressure. However, the potential inflationary impact of tariffs remains a concern, as does the risk of softening labor markets.\n\nOther key central banks will also be in the spotlight. The Bank of Japan will announce its decision on Tuesday—no change is expected as policymakers remain firmly dovish. On Thursday, the Bank of England is also expected to hold rates steady, while the Swiss National Bank is anticipated to deliver a 25 basis point rate cut, potentially lowering its policy rate to 0.00%.\n\nBeyond central banks, the economic calendar is also active, featuring U.S. retail sales, Australian employment figures, and the latest reading on UK GDP—all of which could provide further insight into the global growth outlook. This article was written by Greg Michalowski at www.forexlive.com.

Forexlive Americas FX news wrap 13 Jun: Markets are in flux as Israel and Iran lob bombs

The article discusses geopolitical tensions between Israel and Iran following Israel's missile attack on Iran, which caused market volatility. It highlights the U.S. dollar's rise due to flight-to-safety flows, rising yields, and central bank meetings, including the Federal Reserve's upcoming policy decision. Key events include Israel's strike on Iran, U.S. tariffs, and economic data releases from Canada, the UK, and Australia.