A major turnaround in the risk sentiment amid a recovery in the Chinese Yuan, saw a brief rebound in the risk assets across the board.

USD/JPY witnessed a sudden spurt of buying and regained 107.00 handle but lacked follow-through amid ongoing US-China trade war.

Despite looming hard Brexit concerns, the GBP/USD pair recovers. Speculations concerning no-confidence motion against the UK PM fail to stop him from supporting no-deal Brexit. Investors may keep an eye over macro news/headlines for fresh direction.

A data-light European calendar kicked-off with the German Factory Orders data due at 06:00 GMT, with nothing of note to be reported from the UK docket. Therefore, Brexit/ UK political headlines will continue to grab attention amidst trade-related news-driven risk sentiment.

The German Factory Orders showed an improvement in June, calming fears over a deeper economic slowdown in Europe’s largest economy. Euro kept its recovery mode intact from the lows on upbeat German factory orders, sending the EUR/USD pair back to 1.1200 region.

In the NA session, the US JOLTS Job Openings will be published at 14:00 GMT. Meanwhile, the speech by the FOMC member Bullard is due at 16:00 GMT and American Petroleum Institute (API) Weekly Crude Oil Stock report will drop in at 20:30 GMT.

Among the commodities, gold reversed sharply from YTD tops of $1,475 levels while both crude benchmarks bounced in tandem with Treasury yields and US equity futures, as the risk sentiment improved ahead of the European open.