Trump to increase ethanol use in petrol to appease farmers, shuns oil producers - Reuters

Joshua Gibson FXStreet

As reported by Reuters, US President Donald Trump is seeking to eradicate limits on gasoline fuels that contain large amounts of ethanol, in an effort to bid up US consumption of corn in a bid to win back some support from American agricultural sectors, who have found themselves in a lurch thanks to Trump's trade war with China, an odd position for farmers who largely supported Trump in the last election.

Key highlights

President Trump wants to strike out limits on E15 gasoline, a fuel source with up to 15% corn-based ethanol mixed in, a move that will likely see negative fallout from the oil industry, who stand to lose out on profits as ethanol reintroduction eats away at oil consumption.

In an effort to secure votes in the American farming belts, Trump is looking to drive up consumption of corn, though the move sees the president take a step away from US oil refineries, and anger at lifting the E15 ban could damage Trump in other areas of the upcoming midterm elections.

"The American Petroleum Institute, the largest U.S. oil trade association, opposes lifting the ban, saying E15 gasoline ruins older cars and potentially voids warranties. “The only certainty from today’s actions is a lawsuit,” Chet Thompson, head of American Fuel and Petrochemical Manufacturers, said on Tuesday. He said the industry would challenge the finalized rule in court, saying the EPA has acknowledged it lacks the authority to change this rule." - Reuters

Author

Joshua Gibson

FXStreet

Joshua joins the FXStreet team as an Economics and Finance double major from Vancouver Island University with twelve years' experience as an independent trader focusing on technical analysis.

USD/JPY stays below 160.50 as markets assess BoJ decision

USD/JPY fluctuates in a relatively narrow range above 160.00 on Tuesday as markets assess the Bank of Japan's (BoJ) decision to raise the policy rate by 25 at the June meeting. Meanwhile, investors keep a close eye on news coming out of the Middle East, while preparing for the critical Fed meeting.

AUD/USD trades in tight channel near 0.7050 despite hawkish RBA message

AUD/USD trades modestly lower on the day at around 0.7050 on Tuesday as markets adopt a cautious stance amid a lack of details surrounding the US-Iran peace agreement. The Reserve Bank of Australia (RBA) left the door open for possible policy tightening after leaving the interest rate unchanged, as expected, at the June meeting but failed to boost the Australian Dollar.

Gold clings to moderate gains above $4,300 following Monday's rally

Gold maintains a mildly positive tone, holding gains after rallying about 6% over the last few days. The precious metal's recovery, however, has lost steam after crossing the $4,300 line as the initial enthusiasm about the US-Iran peace deal faded, with investors moving to the sidelines in anticipation of details of the agreement and monetary policy decisions by the Fed.

Solana's rebound gains momentum as ETF inflows return

Solana (SOL) steadies at $73 after posting three consecutive green candlesticks since the weekend. The recent recovery is supported by institutional demand, with spot Exchange Traded Funds recording net inflows of $2.81 million on Monday.

Kevin Warsh opens first Fed meeting June 16 with rate hold expected

Kevin Warsh was confirmed by the Senate in a 54-45 vote and sworn in as Federal Reserve Chair on 22 May 2026. The ceremony took place at the White House, with Supreme Court Justice Clarence Thomas administering the oath. The FOMC meeting on 16 and 17 June is his first as chair. The June meeting is also a quarterly projection meeting.

4.2% headline, 0.2% core: Why the Fed's next hike may be targeting the wrong problem

May's CPI put headline inflation at 4.2% on the year, up from 3.8% in April and the hottest reading since April 2023, while core prices rose just 0.2% on the month, undershooting the 0.3% consensus and halving April's pace.