Morning Juice – US Session Prep (2nd June)

Sentiment
A measure of dollar strength slid 0.5%, expanding a run of five consecutive monthly losses, amid mutual accusations between the US and China of breaching a trade deal. Global government yield curves steepened as the long-end weakened, although the move faded through the European morning.

China accused the US of breaching their recent trade deal and pledged to take steps to protect its interests, dimming the likelihood of an immediate leadership call that Trump wants to have to further bilateral discussions.

Japan’s bond market faces additional challenges with debt sales on Tuesday and Thursday, which may intensify pressure on the government to adjust its borrowing plans and soothe investor nerves.

Docket
09:45 ET
US S&P Manufacturing PMI Final Forecast 52.3, Previous 52.3 Range 53 / 51.9

10:00 ET
US ISM Manufacturing PMI Forecast 49.5, Previous 48.7 Range 51.5 / 47

Speakers
10:15 AM ET
Fed’s Logan participates in moderated conversation with Gabe Guerra, president and CEO, Kleberg Bank Text no. Audience Q&A Yes

12:45 PM ET
Fed’s Goolsbee participates in Q&A at Quad Cities Business Journal Mid-year Economic Review. Text TBD. Q&A yes

1:00 PM ET
Fed’s Powell opening remarks at Board of Governors IF Anniversary Conference. Text Yes. Q&A No
BoE Mann speaks in fireside chat at event hosted by Oxfam Women in Govt Society