Forexlive European FX news wrap: Awaiting the Trump-Xi call

• Dollar gains ease in European morning trade
• Weekly update on interest rate expectations
• European indices observe a calmer mood at the open today
• What are the main events for today?
• Eurostoxx futures +0.1% in early European trading
• The bond market continues to hold the line for now
• China anti-monopoly regulator launches investigation into Google
• China announces counter-tariffs against Trump’s trade moves
• Another catch your breath session in Europe today
• FX option expiries for 4 February 10am New York cut

It’s been a pretty calm session with limited newsflow and no data release. There’s a cautiously optimistic mood in the markets but nonetheless it seems like everyone is on the sidelines waiting for the Trump-Xi call headlines.

Earlier this morning, we got the news that China announced counter-tariffs against Trump’s decision which will go into effect on the 10th of February. This hasn’t led to a strong risk-off reaction as the market is now expecting the usual negotiations with potential pause much like it happened with Canada and Mexico yesterday.

In the markets, the US Dollar is a touch softer but trading above yesterday’s lows. Equities are down on the day but continue to slowly edging higher erasing the weekend gap. Treasury yields are higher following yesterday’s bounce after the positive tariffs news as growth fears got set aside for the moment.

In the American session, we have the US Job Openings data but the focus remains on the tariffs headlines given the big macroeconomic impact of a potential trade war.

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