Americas FX Morning Bullets 8 June 2026

Research evidence excerpt

Americas FX Morning Bullets 8 June 2026

8 June 2026

Americas FX Morning Bullets CurrenciesGlobal

◆ USD has mostly struggled to extend its gains this morning Daragh Maher

Head of Digital Assets Research, Sr FX Strategist

◆ Cyclical rather than geopolitical drivers seem most potent HSBC Bank plc

daragh.maher@hsbc.com

+44 20 7991 8888

◆ 160 on USD-JPY and 1.15 on EUR-USD limiting USD gains

Clyde Wardle

Senior EM FX Strategist

Geopolitics, the Fed policy outlook and AI wobbles are combining to create HSBC Securities (USA) Inc.

some pockets of volatility, but the USD is mostly muted. The headlines are clyde.wardle@us.hsbc.com

+1 646 610 3260

plentiful this morning, suggesting the escalation in conflict between Israel and Iran

Tom Wookey

over the weekend is showing no signs of petering out. There are of course some big European FX Strategist

moves in FX, including continued selling pressure for the IDR but also a notable HSBC Bank plc

thomas.wookey@hsbc.com

recovery in the KRW after a troubling few days. But for the most part, the USD is not +44 20 79913367

a great deal higher this morning, at least against G10 FX, which suggests the USD is

more preoccupied with the Fed than with geopolitics (see below). Perhaps the FX

market has seen enough swings in geopolitical risk over the last few months that this

escalation is failing to get traction as there could also be a swift de-escalation in the

coming days. Or perhaps there is less angst than before as oil prices remain well off

their conflict highs and US President Trump is still pushing hard for Israel and Iran to

stop their fighting, including in another social media post this morning.

The USD’s strident reaction to Friday’s stronger-than-expected employment

report shows the power of cyclical drivers has returned.