European FX Open - EUR/USD hits six-day best

EUR/USD makes tentative bases at 1.0141 and 1.0280 and makes a new six day best of 1.0440, semi- buoyed by news that Trump and Putin have agreed to start negotiations to end the war in Ukraine immediately.

Bbg reports though the US President is starting to tell EU leaders what they need to do if they want to secure peace in Ukraine and these demands are set to push the bloc to its financial limits.

Also, new US Treasury Secretary Bessent presented an economic partnership agreement to Ukraine President Zelenskiy on his visit to Kyiv, which is deemed necessary for continued support from Washington.

And EURO wise still, the Bundesbank President Nagel stated the Bank will present a suggestion on how to overhaul the Berlin’s strict borrowing limits after this month’s national ballot.

And, White House Press Secretary Karoline Leavitt said in a briefing that “I do believe” an announcement of reciprocal tariffs will come before India PM Modi’s visit tomorrow. Leavitt said she'll let Trump discuss the details of them.

And now to a busier scheduled too.

Straight off the bat, a clutch of UK releases of UK monthly (seen 0.1% m/m in December) and Q4 GDP (-0.1% q/q, 1.1% y/y), IP/MP and trade.

These releases are followed by Swiss CPI for January and Eurozone IP.

In the second half and after yesterday's US CPI beat we get the PPI prices version (final demand expected at 0.3% m/m 3.3% y/y in January) and initial claims (216k vs 219k).

Overnight, Japan PPI beat expectations at 4.2% y/y in January.

The ECB publishes its latest economic bulletin and there are speeches due from Cipollone as well as the Riksbank's Jansson and Fed's Goolsbee, with Nagel and the Norges Bank governor coming after hours.

Overnight, on policy, Nagel said the ECB mustn’t rush further easing as rates approach a neutral level, while the BOE's Pill believes the MPC needs to move cautiously with cutting rates because the process of bringing down inflation isn’t yet complete.

Elsewhere, all US stock futures sit in the green at start of the day, led by the +0.5% NASDAQ.

And, oil is back below Usd 75/brl as potential progress on a path to (relative) peace in Ukraine could ultimately lead to improvements in Russian supply.

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