Market Commentary: Thursday 26rd June

After The Wall Street Journal reported that President Trump is considering naming an early replacement for Fed Chair Powell, the market is expecting a dovish candidate to be appointed. Traders are betting that U.S. rate cuts could come sooner than anticipated. As a result, the dollar index fell 0.65% from yesterday’s peak — its lowest level since April 2022 — while the U.S. 10-year Treasury yield declined by 1.96 basis points to 4.27%.

The Shanghai Gold Exchange has opened its first offshore physical gold delivery vault and launched two yuan-based contracts in Hong Kong — a move aimed at integrating China’s gold market with the international financial system. Until now, international investors trading on the Shanghai Gold Exchange could only take physical delivery at designated vaults within mainland China.

On the data front, we have U.S. Weekly Initial Jobless Claims at 1:30 p.m., along with a series of Fed speakers in the afternoon: Goolsbee at 1:30 p.m., Barkin at 1:45 p.m., and Barr at 6:15 p.m.

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