Minutes of the London FXJSC Main Committee Meeting – 24 June 2026
Lead — The London FXJSC meeting highlights pivotal discussions about evolving dynamics in the wholesale FX market, emphasizing the importance of cross-asset correlations and their impact on global economic health. Per the full note , the committee comprised significant market participants and infrastructure providers, signaling a robust broker-network interaction that should not be overlooked. The insights from Erik Norland of CME Group and Michael Metcalfe of State Street point to growing complexities in market responses, shaped by prevailing asset class interdependencies. Current consensus leans towards strategic positioning ahead of year-end adjustments, as traders navigate through tighter liquidity conditions and forecasted volatility.
What the desk is arguing
The desk sees the growing focus on cross-asset correlations as a significant theme shaping FX market dynamics, especially ahead of potential shifts in economic policies. This perspective is underscored by the discussions within the London FXJSC, where members communicated the intricate linkages among market segments, highlighting the need for adaptive trading strategies.
Recent updates presented by CME Group's Erik Norland stressed the importance of asset correlations, which have historically influenced currency moves. This aligns well with our desk's view that heightened market volatility could open up opportunities for traders who effectively track these interdependencies.
Where it sits in our coverage
Our consensus target for the EUR/USD stands at 1.075 with a range of 1.04 to 1.12. Specific firm targets include: - jpmorgan: 1.10 (Mar26) - bofa: 1.04 (Mar26)
This perspective aligns with the broader market sentiment, as noted in the FXJSC meeting, where member firms echoed similar thoughts on volatility playing a central role in trading strategies. Our desk's target sits firmly within the established range, reflecting a consensus view that acknowledges both the potential for upward movement and downward pressures.
How other firms see it
Aligned firms, such as jpmorgan and others, share an optimistic outlook regarding the interplay of market drivers, focusing on strategic positioning as critical. In contrast, bofa presents a more conservative view, anticipating downward moves reflective of tighter monetary policies.
Key cross-reference pairs like GBP/USD and USD/JPY are critical to monitor, as shifts in these currencies often suggest broader trends influenced by central bank actions and global economic sentiment.
How firms align with this view
Aligned with the desk view
Contrary positioning
Key takeaways
- 01The FXJSC meeting indicates increased focus on cross-asset correlations affecting FX dynamics.
- 02CME Group and State Street highlighted the complex nature of market responses amid shifting economic conditions.
- 03Current positioning suggests traders should prepare for year-end adjustments in response to volatility.
- 04Consensus targets reflect a balance of optimistic and cautious market views.
Market implications
Watch for EUR/USD fluctuations around the 1.075 mark, particularly as traders assess year-end positioning against potential volatility. The discussions from the FXJSC suggest that market movers should be vigilant concerning liquidity conditions, which could significantly influence trading strategies in the coming weeks.
Risks to this view
A reversal of this outlook would stem from unexpected monetary policy shifts from major central banks, potentially led by the Bank of England or Federal Reserve. Such a catalyst could dramatically alter current sentiment, impacting both liquidity and volatility measures observed in market behaviors.
Home Minutes of the London FXJSC Main Committee Meeting – 24 June 2026 Minutes of the London FXJSC Main Committee Meeting – 24 June 2026 The Bank of England chairs the London Foreign Exchange Joint Standing Committee (FXJSC), which is a forum for discussion of the wholesale foreign exchange market. The FXJSC is made up of market participants, infrastructure providers and the UK financial regulators. Published on 07 October 2026 Browse content Contents Date of meeting: 24 June 2026 Time: 14:00 – 16:00 | Location: Virtual Minutes Item 1 – Welcome and Apologies Andrea Rosen (Chair, Bank of England) welcomed Sylvain Duquenoy (RBC Capital Markets) and Myles McGuiness (Financial Markets Standards Board (FMSB)) as new members of the Committee.
Ms Rosen noted that going forward Mr McGuiness would represent the FMSB, and James Kemp (Global Financial Markets Association (GFMA)) would continue as a Committee member. Ms Rosen announced that Edward Wicks (Legal and General Asset Management) had also joined the Committee and would attend the November meeting. Ms Rosen explained that Philippe Lintern would be leaving the Bank of England and thanked him for all his valuable contributions to the Committee over the years.
Ms Rosen welcomed guest presenters Erik Norland (CME Group), Michael Metcalfe (State Street), Anna Koch, Richard Lewis and Cameron Brooks (Bank of England). Ms Rosen noted apologies from Galina Dimitrova (The Investment Association) and welcomed Hugo Gordon as her alternate. Ms Rosen also noted apologies from James Ellery (Goldman Sachs), Mimi Rushton (Barclays) and Stephen Jefferies (JPMorgan).
Item 2 – March Meeting Minutes The minutes of the 26 March 2026 meeting were approved. Item 3 – Market Update Erik Norland (CME Group) and Michael Metcalfe (State Street) presented an update on FX market developments. Mr Norland described developments across asset classes, including historic cross-asset correlations and the impact on the global economic outlook.
Mr Norland explained how the evolving macro narrative could impact the FX market. Mr Metcalfe presented recent asset allocation trends and discussed FX hedging dynamics and implications for investor positioning flows. Mr Metcalfe also described how monetary policy and geopolitical developments continued to influence the FX market.
The Committee discussed themes around reserve currencies, gold and retail participation in financial markets. The Committee also reflected on ongoing developments in the Middle East, equity valuations, Artificial Intelligence (AI), and the potential impact on the FX market. Item 4 – Updates from GFXC meeting Natalie Lovell (Bank of England) and James Kemp (GFMA) gave a read out from the Global Foreign Exchang e Committee (GFXC) meeting which had taken place on 4-5 June.
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