Forexlive European FX news wrap: Markets await new info on trade negotiations

• China's Premiur Li: Currently, external situations have drastically changed
• What are the interest rates expectations for G8FX?
• Watch out for the first trade deals to lead the market expectations
• Eurozone February industrial production +1.1% vs +0.3% m/m expected
• Germany April ZEW survey current conditions -81.2 vs -86.8 expected
• Federal Reserve Governor Waller's strategy for dealing with tariffs
• China calls for its airlines to halt any further Boeing jet deliveries amid trade strife
• IEA slashes world oil demand growth forecast amid trade tensions
• China says will stay committed to joining hands rather than throwing punches
• France March final CPI +0.8% vs+0.8% y/y prelim
• BofA FMS: Net 61% expect the Dollar to deprecitate in the next 12 months
• What are the main events for today?
• UK February ILO unemployment rate 4.4% vs 4.4% expected
• Germany March wholesale price index -0.2% vs +0.6% m/m expected
• Nissan set to cut Japanese production of its top-selling US model due to tariffs - report
• G7 finance ministers, central bank governors to hold meeting in the US - report
• NZD/USD eyes fifth straight day of gains, looks to come up for air
• FX option expiries for 15 April 10am New York cut
• The bond market holds calmer for the time being

It's been another calm European session as the markets consolidate awaiting new information on trade negotiations. There was no notable news release and the peak in escalations seems to be behind us (at least for now).

Markets are now focused on trade deals and US-China developments. That has led to a mostly rangebound price action following two weeks of huge volatility.

On the data front, we got a mixed UK employment report with the unemployment rate holding steady. That didn't change anything in terms of interest rates expectations. The soft data continues to show a bleak picture with the German ZEW plunging to the lowest level since July 2023.

That's all expected though and mostly old news with markets showing little to no reaction to economic data at the moment given the focus on tariffs and trade negotiations.

In the American session, we get the Canadian CPI report ahead of tomorrow's BoC rate decision. Inflation has been moving higher recently after the aggressive BoC easing, and the tariffs are expected to keep inflation higher while weighing on growth. The market sees 44 bps of easing by year-end with a 61% probability that the central bank will hold rates unchanged tomorrow.