ForexLive European FX news wrap: Softer dollar as markets digest Trump tariffs delay on EU

Headlines:

• European indices jump at the open as Trump delays EU tariffs
• Macron says there was a good exchange between Trump and von der Leyen
• EU says ‘zero-for-zero’ proposal is still on table in trade talks with the US
• EU spokesperson says call with Trump was initiated by von der Leyen
• German economy minister says to calm down and keep talking on tariffs for now
• US reportedly demanded South Korea to resolve trade imbalance in talks last week
• Fed’s Kashkari: Trade policy creates uncertainty for any decision before September
• SNB total sight deposits w.e. 23 May CHF 443.4 bn vs CHF 443.2 bn prior
• UK and US holiday slows down the agenda to start the new week

Markets:

• NZD leads, JPY lags on the day
• European equities higher; S&P 500 futures up 1.2%
• Gold down 0.7% to $3,333.75
• WTI crude down 0.2% to $61.38
• Bitcoin up 0.7% to $109,792

It’s a poor start to the week for the dollar once again but at least it is seen trimming earlier losses from Asia. That came after risk appetite perked up as Trump agreed to delay the 50% tariffs on the EU to 9 July, following a phone call with von der Leyen.

That’s the main story after the weekend, with some European officials chiming in about the exchange. However, there was little to no details offered on what the two leaders spoke about.

EUR/USD moved up to around 1.1420 in Asia but is now down to 1.1380, still up 0.1% on the day. Meanwhile, AUD/USD also traded to 0.6530 levels earlier on as it stays on the hunt of a breakout above the 0.6500 mark. But the pair has eased back to around 0.6505 currently, up 0.2% on the day.

Besides the dollar, the yen is also lagging behind with USD/JPY itself seen up 0.3% to near 143.00. AUD/JPY is a notable mover as it pushed up to 93.19 earlier but is now holding near 93.00 on the day – up 0.5%.

As for equities, European indices are seen posting a solid rebound after the Friday losses. That comes as US futures are also marked up by over 1%, though do be reminded that Wall Street is closed today.

As such, we’ll be left to digest more trade headlines before gearing towards month-end trading in the days ahead.

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