A light one on the data docket in Europe today

The dollar is leading the way in the major currencies space amid a more risk off mood in broader markets. Traders and investors are seeing that it might not take much to draw the ire of Trump, as seen from the whole situation with Colombia overnight. Tariffs can easily be floated on just about anything and so that will keep markets on their toes in the weeks/months ahead.

The heavy selloff in US tech shares is also playing a part in all of this. Nvidia is being hammered amid the buzz on China’s own AI startup, DeepSeek. Although it isn’t new, the latest whirl raises fresh doubts about the necessity for big AI spending and that’s dragging chipmaker stocks lower. And given how Nvidia has carried the tech rally last year, it’s a major dent to overall market sentiment.

S&P 500 futures are now down 1.2% with Nasdaq futures down 2.2% on the day.

Looking to European trading, it will be more of a waiting game as we settle down from Trump’s warning shot on tariffs. It’s not quite one that is hitting at China or the EU but if anything, it shows the potential for things to change in just a blink of an eye.

It will be a bit of a wait until we get to US trading, where the focus will turn to Wall Street to see if dip buyers can turn things around. Or if this is a start of a modest correction in equities after the hot start to the year.

In terms of data, the German Ifo business survey is the main highlight. However, it should just serve to remind us that the German economic outlook remains rather dire at this point in time.

0900 GMT – Germany January Ifo business climate index0900 GMT – SNB total sight deposits w.e. 24 January

That’s all for the session ahead. I wish you all the best of days to come and good luck with your trading! Stay safe out there.

This article was written by Justin Low at www.forexlive.com.