EUR: EUR/USD- Extends Move Higher Following FOMC, Challenging Above Pivotal 1.15

The EUR/USD range overnight was 1.1384-1.1437, Asia is currently trading around 1.1405. The pair again topped out around its first resistance in the 1.1430 area. Asia has again initially struggled to follow on with the significant bounce in US tech overnight(Was this Month-end Flow), this has seen the USD drift higher. Tonight's N/Y session will be closely watched to see if this bounce in risk can be built on or was it just a once-off flow. On the day, I continue to favour fading rallies with the initial resistance continuing toward 1.1430 and then the 1.1500-1.1550 area. It looks like we might do some work in this 1.1380-1.1440 area in the short-term. The 1.1400-1.1900 range which had held going back well over a year now looked to have been potentially broken. A sustained hold below this area could potentially be quite significant and signal the beginning of a new downtrend with the initial target in the 1.0900-1.1100 area.     

• MNI - Kazaks: "Urgency Of Consecutive Moves Has Decreased Significantly": In another instance of an ECB Governing Council member expressing a patient view on further rate hikes, Latvia's Kazaks told Bloomberg on the sidelines of the Sintra symposium that the de-escalation in the US-Iran conflict has reduced the impetus for more tightening.
• ECB Considering Upping Minimum Reserve Requirement: Reuters Sources: Making the rounds in the last hour or so: the ECB is eyeing an increase in minimum reserve requirements by the autumn, according to Reuters citing sources.
• MNI INTERVIEW: Euro Stablecoins To Challenge Dollar Dominance. The biggest opportunity for euro-denominated stablecoins is not retail payments but reducing the overwhelming dependence of digital markets on the U.S. dollar, the CEO of Euro stablecoin Qivalis told MNI, arguing that European investors and companies are currently forced to take foreign-exchange risk simply to participate in blockchain-based finance. 
• Options : Closest significant option expiries for NY cut, based on DTCC data: 1.1375(EU839m), 1.1650(EU1.35b). Upcoming Close Strikes :  1.1300(EU1.55b July 2), 1.1450(EU2.8b July 2), 1.1600(EU1.78b July 3) - BBG
• The EUR/USD Average True Range for the last 10 Trading days: 54 Points

Fig 1 : EUR/USD Spot Daily Chart

Source: MNI - Market News/Bloomberg Finance L.P

Below is a selection of key recent onshore media highlights for China ICYMI :

Employment (Xinhua): China to encourage employment, business start-ups among ex-service personnel

SOEs (Xinhua): Chinese SOEs report 3.5 pct profit growth in first 5 months

AI Boom (Yicai): Chinese AI Chip Startup Cambricon Is First Star Market Stock to Hit CNY1 Trillion Market Cap

AI Boom (Yicai): China's Optics Valley to Invest USD147 Million to Build 'AI Agent City'

Outbound Investment (Global Times): Is China's regulation on outbound investment a move to 'build an economic fortress'?

Capital Markets (China Securities): Anchored to serving the real economy, the capital market practices its original mission of serving the people through finance.

Fund Industry (China Securities): Fund industry writes its answer to the era's call to serve the nation's most important needs.

Growth Outlook (China Daily): Economy on track to meet growth target

Consumer Spending (China Daily): Autos set to spur consumer spending

Consumers (China Daily): FMCG market charts new growth path

Liquidity (Shanghai Securities): Overnight reverse repos improve expectations; overall liquidity remains stable across the quarter.

Wealth Management (Shanghai Securities): Bank wealth management products reached a record high of over 35 trillion yuan at the end of May

Consumption (SCMP): China faces economic balancing act: AI and exports boom while consumers stay home

MNI China Press Digest Jul 1: Demand, IPO, Industrial Internet

BUY 950 of USU6 traded at 112-26, post-time 12:15:00 AEST (DV01 $125,288). The contract is currently trading at 112-24, -24 from closing levels.