Forexlive European FX news wrap: Awaiting the US-China trade talks outcome

• US May NFIB small business optimism index 98.8 vs 95.9 expected
• Lutnick: Talks with China are going well
• ECB’s Rehn: We will take decisions meeting by meeting
• Eurozone June Sentix investor confidence +0.2 vs -6.0 expected
• SNB total sight deposits w.e. 6 June CHF 438.1 bn vs CHF 444.9 bn prior
• ECB’s Villeroy: We will remain pragmatic going forward on rates
• Traders now see the next rate cut for the BoE in September vs November before jobs data
• UK April ILO unemployment rate 4.6% vs 4.6% expected
• FX option expiries for 10 June 10am New York cut
• US-China trade talks set to continue in London later today
• Japan PM Ishiba, US President Trump to hold bilateral talks on the sidelines of G7 summit
• Nomura expects a rebound in China’s US-bound exports in June

It’s been another slow session today given the lack of key economic releases and the waiting for the US-China trade talks outcome. The expectations are for something positive with probably reciprocal concessions and a promise to have a new round of negotiations soon. It looks unlikely to have some major breakthrough or deal already, but watch out for that nonetheless.

The markets remain kind of rangebound as traders await new catalysts like the outcome of the US-China negotiations and the US CPI report tomorrow. Until then, we will likely keep with this kind of price action. There is of course some outlier like bitcoin as the cryptocurrency surged to new highs yesterday after a key technical breakout.

In the American session, we don’t have much on the agenda other than the US Redbook data and the 3-year auction. Neither of these releases will influence markets expectations. Therefore, the focus will remain on the US-China negotiations and traders will be on the lookout for market-moving headlines.

This article was written by Giuseppe Dellamotta at www.forexlive.com.