Forexlive European FX news wrap: Trump mulls a national emergency declaration for tariffs

• US MBA mortgage applications w.e. 3 January -3.7% vs -12.6% prior
• Trump mulls a national emergency declaration to allow for new tariff program – report
• Cable turns lower on the week as dollar catches a bid
• The bond market stays in focus with US jobs report eyed
• Eurozone December final consumer confidence -14.5 vs -14.5 prelim
• Eurozone November PPI +1.6% vs +1.5% m/m expected
• European indices seen more tepid at the open today
• France November trade balance -€7.09 billion vs -€7.67 billion prior
• Eurostoxx futures -0.4% in early European trading
• Germany November retail sales -0.6% vs +0.5% m/m expected
• Germany November industrial orders -5.4% vs 0.0% m/m expected
• A couple of light releases to move things along in the session ahead
• Chinese yuan slide continues on the week
• FX option expiries for 8 January 10am New York cut
• Japan December consumer confidence 36.2 vs 36.4 prior

It’s been a pretty quiet session in terms of the newsflow but in the final part of it, we got a report from CNN saying that Trump mulled a national emergency declaration to allow for the new tariff program.

This sent the US Dollar higher and had a negative impact on risk assets with stocks paring gains and commodities falling. Will Trump deny this news as well later in the day? Keep an eye on that.

In the American session, we have Fed’s Waller speaking and we get some US labour market data as we get the US ADP and the latest US Jobless Claims figures. We will conclude the day with the FOMC Meeting Minutes although as it usually the case, the release shouldn’t change much for the markets.

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