There’s not much happening in European morning trade so far as markets are gripped by the prospect of Trump’s big announcement later in the day. The lack of any meaningful data releases on the session isn’t helping either, making for a slower and static day of trading thus far. The dollar is mostly little changed, only seen slightly down against the aussie and kiwi.
EUR/USD is hugging closer to the 1.0800 level with large option expiries in play. Meanwhile, USD/JPY is finding itself little changed but closer to the lows for the day as bond yields remain tentative as well.
AUD/USD is seen up almost 0.5% to just above 0.6300 but it’s not suggestive of much as the risk mood remains more cautious today. S&P 500 futures are seen down 0.3% while in Europe, German stocks are leading the downside charge with the DAX lower by a little over 1%.
In the commodities space, gold is seen up 0.6% to $3,129 as the precious metal continues to stay poised for the time being.
All eyes are on Trump’s tariffs announcement later and that will help to set the tone for the market moves in the latter stages of this week. As a reminder, he is expected to deliver the announcement at 2000 GMT (4pm ET).