Forexlive European FX news wrap: Hope is in the air but the deadline nears

• US Bessent: Tariff negotiations are the result of massive inbound calls, not markets

• As markets stabilise, so do the rate cuts expectations
• UK's Reeves: Our first priority is not to create more trade barriers, but to reduce them
• ECB's Nagel: Global growth prospects have deteriorated massively
• ECB's Stournaras: Monetary policy is to be less restrictive in 2025
• ECB's de Guindos: We are in a moment of anxiety and uncertainty
• ECB's Simkus: 25 bps rate cut needed in April
• Morgan Stanley cuts US GDP growth forecast but does not anticipate a recession
• Citi slashes China GDP growth forecast for this year to 4.2%
• Wall Street price targets and why you should always ignore them
• EU's von der Leyen says had constructive phone call with Chinese premier Li Qiang
• Dollar stays on the backfoot in European morning trade
• UBS cuts Eurozone growth forecast for this year to 0.5%
• European indices look for a bounce after a dreadful past few sessions
• The yuan devaluation is now a big risk for markets
• France February trade balance -€7.87 billion vs -€5.85 billion expected
• What are the main events for today?
• China says US actions do not show willingness for serious talks
• Little on the agenda in Europe today
• US futures hold up for now but tariffs threat remains
• FX option expiries for 8 April 10am New York cut
• Markets look to the art of the deal next

It's been a pretty calm session with no notable data release and surprisingly limited newsflow as we approach the April 9 deadline. We've got some positive comments from US Treasury Secretary Scott Bessent late in the session where he confirmed that they could end up with good deals and Trump will be personally involved in the negotiations.

Other than that, there wasn't really anything material. We got some ECB members confirming a rate cut in April, which is not surprising at all, and some cuts to growth forecasts by major investment banks, which could be revised in the next week or month already.

There's nothing on the agenda in the American session and even it there was, the market focus is solely on negotiations ahead of the deadline. There's also the risk of China escalating the trade war further after yesterday's Trump threat to impose additional 50% tariffs effective tomorrow if China wasn't to back off from the recent retaliation.

Also, watch out for the risk of a potential yuan devaluation as a response against Trump's threats. The USD/CNH rate is getting closer to the key 7.3750 level and China fixed the renminbi at its weakest level in 18 months today.