UK and US holiday slows down the agenda to start the new week

• Trump recommends a 50% tariff on EU starting on June 1 (Friday)
• Trump agrees to extend EU tariff deadline to July 9 (Monday)

So, what’d I miss? Well, definitely just in time for more Trump shenanigans it seems. His flip flopping isn’t new and is the same tactic he deployed when announcing the reciprocal tariffs in early April. So, this falls within that. Tariff-ception?

Anyway, risk appetite is picking up to start the new week as markets sense that Trump will try and at least look for the deal. It’s sort of the same approach with China in a sense. But we’ll see.

9 July is not far away and expect there to be much drama in the coming weeks.

But for today, things should be much quieter unless we get more headlines from the man himself. It’s a UK and US holiday, so that will subdue trading appetite for much of the day.

European markets will be open alongside Canada later on but the economic calendar is pretty much empty.

The dollar is left to fend for itself after a torrid period last week and is falling further today. EUR/USD is breaching 1.1400 with S&P 500 futures now marked up by 1% going into the session ahead. Of the more interesting charts, AUD/USD is one to watch as it eyes a technical breakout above the 0.6500 level.

This article was written by Justin Low at www.forexlive.com.