Forexlive European FX news wrap: The markets remain nervous

• Eurozone January unemployment rate 6.2% vs 6.3% expected
• What are the main events for today?
• FX option expiries for 4 March 10am New York cut
• Markets take the tariffs implementation in stride so far
• China responds with counter-tariffs to Trump’s latest tariffs bump
• Trump tariffs bump on China takes effect, also tariffs on Canada and Mexico
• Trump’s tariffs bump against China set to go into effect, are countermeasures imminent?
• China says willing to resolve US concerns on tariffs through dialogue
• Bitcoin falls back to test key level as the “strategic reserve” pump gets dumped
• China’s “two sessions” meetings set to conclude on 11 March

We had an empty session in terms of data releases and newsflow. The only notable data point was the Eurozone unemployment rate which beat expectations falling to 6.2%.

It’s the tariffs day for Canada, Mexico and China with markets remaining on the edge and on the lookout for tariffs related headlines. We will also have Trump’s speech to Congress late in the evening.

Growth concerns continue to increase with the markets now fully pricing in three rate cuts by the Fed by the end of the year, which is in stark contrast to just one that was expected just a couple of weeks ago.

Tariffs and trade wars are of course negative for growth and that’s what’s being reflected in the markets but the NFP and CPI reports ahead of the FOMC decision will be key in determining whether the markets have overreacted once again or there’s even more pain ahead.

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