Another catch your breath session in Europe today ...Middle East

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As things stand, all there's left is that 10% tariffs on China - at least in this opening salvo. But Trump did say that there would be talks with Xi "probably in the next 24 hours". So, we'll see.

The dollar is seeing a little bounce back on the day but not after having seen gains evaporate in trading yesterday. The greenback opened with a gap higher across the board but as Trump relented on tariffs, that gap higher was erased. A look at USD/CAD:

As such, risk trades might find some incentive to push higher but it's still quite a tricky landscape.

His erratic nature means that you never know when he's going to start to reignite tariff threats on that front. And it will keep market players more guarded than they were at the start of the year at least.

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

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