The risk-on sentiment across the financial markets was boosted this Wednesday, on reports for significant progress on the US-China trade talks. Further, upbeat Australian retail sales and trade figures combined with a stellar Chinese services PMI report bolstered the demand for the risk assets such as the Asian equities, oil and Treasury yields.

USD/JPY briefly hit fresh 2-week tops at 111.53 as the Japanese Yen was weighed down by renewed optimism over US-China trade talks. Both the European currencies, the EUR and the GBP staged a tepid comeback amid fresh optimism on the Brexit issue, as markets hoped for faster progress on the UK's exit from the EU.

The day has a busy EUR macro calendar with a series of final services PMI reports from across the Euro area releasing from 07:15 GMT onwards. At 08:30 GMT, the UK services PMI release will be closely eyed and soon after, the Eurozone retail sales data will be reported at 09:00 GMT.

Further on, before the US open, the US ADP employment change numbers will be published at 12:15 GMT. This report is usually considered as a precursor to the key payrolls data due this Friday at 12:30 GMT.

In the NA session, the US Markit services PMI data will be released at 13:45 GMT, followed by the ISM non-manufacturing PMI report due at 14:00 GMT. Next of relevance remains the US EIA crude inventories report, releasing at 14:30 GMT.

Oil prices rose to their highest level this year on Wednesday despite news that Russia fell short of its oil-output cut target for last month and the bearish US inventory report released yesterday. Today, the Energy Information Administration is expected to show the US oil inventories dropped last week.

Gold prices rose on Wednesday despite renewed trade optimism, but still trades near four-month lows. Investors took a breather in today’s start, on positive headlines from the Brexit but the Financial Times’ report indicating both the US and China reaching closer to a trade deal boosted buying as China is among the largest gold consumer.