ForexLive European FX news wrap: Light changes as markets wait on trade developments

It was a relatively slow session with major currencies not really doing all too much. That comes as we continue to wait on more trade headlines, with some key developments to keep an eye out for during the latter stages this week.

The appeals court ruling on Trump’s reciprocal tariffs will need some response by the plaintiffs tomorrow and then by the administration by 9 June. So, that’s one to watch out for.

Then of course, there’s general trade negotiations with Trump aides continuing to talk up the notion of sealing trade deals before the early July deadline. The latest in this segment is that we might see one between the US and Canada as early as next week. So, we’ll see. 35 days to go. Tick tock, tick tock.

And then we also have Trump looking to get Xi on a phone call. He offered a light remark on that in the late hours of the US yesterday, saying it is “extremely hard” to make a deal with Xi. We’ll see how things go next but China clearly isn’t waiting around as they are reportedly weighing a major Airbus deal. Preliminary figures suggest they could put in an order between 200 and 500 aircrafts, bolstering ties with the EU instead.

In FX, the dollar is little changed for the most part as major currencies lack any real conviction during the session. EUR/USD moved up to touch 1.1400 before backing off to around 1.1380 again, up just 0.1% on the day. USD/JPY nudged a little lower to 143.80 but picked itself back up to 144.20 levels now, hinting at a push and pull mood more than anything else.

There wasn’t too much action elsewhere with only the antipodes holding slightly higher. AUD/USD is seen up 0.4% to 0.6485 but still lacking any real impetus to breach the 0.6500 mark.

In other markets, US futures nudged a little higher while European indices are holding up as well amid some calmer remarks from EU trade commissioner Sefcovic following his meeting with US trade representative Greer.

In the commodities space, gold is little changed as is oil so far on the day. So, all of that put together is not offering all too much to work with for now.