• Intervention risks weigh on momentum as USD/JPY approaches the highest level since 1986
• Bitcoin turns more bearish with chip stocks nose diving
• ECB policymaker Lane sees signals pointing to price pressures in the coming months
• UK June flash services PMI 48.7 vs 50.1 expected
• Eurozone business activity sees a slower downturn in June as price pressures cool slightly
• Iran says it has no plans to let IAEA inspectors to visit nuclear sites
• Germany June flash manufacturing PMI 50.0 vs 50.4 expected
• French business downturn eases slightly in June, price pressures remain elevated
• French business climate see minimal rebound in June as struggles continue
• What are the main events for today?
• US futures hold lower as tech shares lead the drop again
• FX option expiries for 23 June 10am New York cut
• Core prices in Japan continue to keep above 2% in May, according to BOJ data

The main highlight of the session were the Flash Eurozone and UK PMIs. The Eurozone June flash PMI painted a mixed picture, with services improving slightly to 48.9 versus 48.6 expected, suggesting the slowdown in activity may be stabilizing.

In contrast, the UK services sector disappointed sharply, with June flash services PMI falling to 48.7 versus expectations of 50.1. The miss points to a notable loss of momentum in the UK economy, raising concerns that higher borrowing costs and weaker consumer demand are increasingly weighing on business activity, strengthening the case for a more cautious stance from the Bank of England.

The Bank of Japan’s Core CPI gauge stayed above the 2% threshold in May. Although headline inflation remains partly distorted by government subsidies, the stickiness in underlying prices reinforces expectations that the BoJ will maintain its gradual tightening bias, especially as imported energy costs and a weaker yen continue to pose upside risks to inflation.

Overall, the hawkish Fed shadow since last week is still driving the price action as nothing significant happened since then. In the American session, the only highlight will be the US Flash PMIs. Services PMI is expected to tick higher to 51.1 vs 50.7 prior, while the Manufacturing PMI is seen easing to 54.6 vs 55.1.

This article was written by Giuseppe Dellamotta at investinglive.com.