Forexlive European FX news wrap: Some calm after Monday’s swings

• ECB’s Rehn: Great uncertainty is restraining economic activity
• US VP Vance: India and America have finalised terms of reference for a trade deal
• Little progress on trade negotiations keeps the market betting on more aggressive easing
• BoE’s Greene: Pricing partly reflects global factors
• ECB survey: Inflation seen at 2.2% in 2025 vs 2.1% seen three months ago
• SNB total sight deposits w.e. 18 April CHF 448.3 bn vs CHF 446.9 bn prior
• Japan Keidanren Chief Tokura: Rapid FX fluctuation not desirable for economy
• What are the main events for today?
• Tedious US-Japan trade talks highlight difficulty for any deals
• USD/JPY dips below 140 for the first time since September last year
• FX option expiries for 22 April 10am New York cut
• Long-end Treasuries continue to send warning signals
• Gold stays relentless in its push higher, eyes $3,500 next

It’s been a relatively quiet session in the markets compared to yesterday’s aggressive moves. There hasn’t been any notable data or news release and we continue to wait for some concrete development on the trade negotiations front.

The main theme remains the “sell America” trade with US assets like stocks, bonds and the USD remaining under pressure while safe havens like gold continue to make new highs.

The problem is that positioning is getting overstretched pretty much everywhere and that’s when you see big reversals once a catalyst hits the market.

The catalyst will likely be the first trade deal as the focus remains on tariff negotiations.

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