US: White House Response Contains Fallout From Epstein News Cycle

RRP usage inches up to $219.415B this afternoon from $218.030B yesterday, total number of counterparties at 37. Usage had fallen to $54.772B on Wednesday, April 16 -- lowest level since April 2021 - compares to yesterday's (July 1) $460.731B highest usage since December 31.

• The greenback is consolidating another positive session on Tuesday, with the USD index extending its latest recovery and rising ~0.3%. Renewed tariff related uncertainty appears to be underpinning the renewed optimism, with the latest rhetoric from President Trump doing little to change the tone.
• In similar vein to Monday’s session, the Japanese yen is one of the poorest performing currencies in G10 amid the specific uncertainty related to a US trade deal with Japan and the Japanese PM stating that comprehensive negotiations will continue in the weeks ahead. USDJPY has also benefitted from the higher core yields backdrop, and rose as high as 146.98, further narrowing the gap to the June 23 spike high of 148.03.
• At the other end of the spectrum, the Australian dollar continues to outperform in G10 following the surprise RBA rate hold, against firm market expectations for a 25bp cut. The pair has settled around the 0.6520 mark and a bullish trend set-up is maintained, with the latest pullback considered technically corrective.
• Standing out on the chart is AUDJPY (+1.10%), which has risen above an important area of resistance around 95.75 which aligns with the March and May highs from earlier in the year. Further upside would target a move towards the February highs at 97.33. Notably, CHFJPY is now trading above 184.00, fresh record highs for the cross. This extends the rally from the June lows to 5.8%.
• China’s CPI/PPI data will precede Wednesday’s calendar highlight of the RBNZ decision, where a majority of analysts expect a rate hold at 3.25%. Later on Wednesday, FOMC minutes are scheduled.

• "*TRUMP SAYS IMPOSING 50% TARIFF ON COPPER" -bbg
• "ANNOUNCING COPPER TARIFF TODAY" -bbg
• Copper futures initially spike on the news although quickly reverse as the markjet anticipates the higher price for the US consumer. In simialr vein, USDCLP initially lower on the headline but now reversing.