Forex today is driven by the US dollar dynamics and the price-action surrounding the Treasury yields and the recent US-China trade truce. The dollar slipped in Asia on Tuesday as U.S. Treasury yields fell to three-month lows, a sign some investors were wagering the Federal Reserve would slow the pace of its rate hikes. USD/JPY pair stalled its march towards the 114.00 handle and reversed sharply to test the 113.00 level, while GBP/USD was moving upwards due to broad dollar weakness. EUR/USD could pick up a strong bid on sliding treasury yields.

The European calendar remains relatively light today, with no first-tier macro news while the second-liner PPI numbers could offer some incentives to the traders. From the UK docket, the construction PMI for November will be released at 09:30 GMT. Apart from the macro data, BOE Governor Carney’s testimony on the Brexit withdrawal agreement is set at 09:15 GMT. In the NA session, in focus is on FOMC member Williams’ speech at 15:00 GMT and the API weekly crude oil stocks data at 21:30 GMT.

Oil prices rose on Tuesday, extending bigger gains from the previous day amid expected OPEC-led supply cuts and a mandated reduction in Canadian output. U.S. West Texas Intermediate (WTI) crude futures were at $53.33 per barrel while International Brent crude oil futures at $62.20 per barrel.

Gold prices gained on Tuesday in Asia as the dollar declined on easing U.S.-China trade worries. The dollar also lost its upward momentum in recent days on dovish signals from the Federal Reserve, which has indicated a possible pause in interest rate hikes after a widely-expected December increase.