BRAZIL: Lula's National TV/Radio Broadcast On Tariffs Set For 2030 Local Time

The Federal Reserve has provided notice that it will hold an Open Board Meeting at 2pm ET on Wednesday Jun 25, with the subject: "Proposed revisions to the Board’s supplementary leverage ratio standards".

• While there were no more details provided, the announcement appears to have rekindled speculation that the regulatory authorities will soon align on an easing of SLR standards, which is seen to be supportive of demand for Treasuries vs swaps.
• The 10Y SOFR swap spread widened in Treasuries' favor by 0.9bp to -52.6bp. The spread remains tighter than the -50bp level that has prevailed since Treasury market turmoil in April.
• This is unlikely to be the end of the process: Gov Bowman who heads Fed supervision said earlier this month that the Fed will host a conference in July addressing several  aspects of large bank regulation including SLR, though in a nod to broader  reforms, she says there will also be potential changes discussed at the event including GSIB surcharges, Basel III capital requirements, and stress testing.

US State Department Spokesperson Tammy Bruce is shortly scheduled to brief reporters from the Department of State. LIVESTREAM

• If the presser goes forward, there will be considerable market interest on any details that could flesh out the administration's position on Iran, including the prospect of diplomacy or outreach to Tehran from Secretary of State Marco Rubio.
• US President Donald Trump told reporters aboard Air Force One yesterday, without conviction, that he “may” dispatch either Vice President JD Vance or Middle East envoy Steve Witkoff for talks with Iranian officials.

• RES 4: 0.8624 High Apr 21    
• RES 3: 0.8592 61.8% retracement of the Apr 11 - May 29 downleg
• RES 2: 0.8566 High Apr 24 
• RES 1: 0.8547 High Jun 12
• PRICE: 0.8527 @ 15:41 BST Jun 17
• SUP 1: 0.8476/8450 Low Jun 12 / 50-day EMA 
• SUP 2: 0.8407/8356 Low Jun 4 / Low May 29 and the bear trigger 
• SUP 3: 0.8327 1.382 proj of the Apr 11 - 16 - 21 price swing
• SUP 4: 0.8316 Low Mar 28 and a key support

A bullish theme in EURGBP remains intact and last week’s gains reinforce current conditions. The cross remains above the 50-day EMA and the breach of the average highlights a stronger reversal. This signals scope for a climb towards 0.8592, a Fibonacci retracement. On the downside, support to watch lies at 0.8450, the 50-day EMA. Clearance of this level would highlight a possible reversal.