Today’s trading session witnessed good two-way businesses, mainly driven by the prevalent risk environment and broad US Dollar weakness. But most majors stuck to tight trading ranges amid a lack of fresh economic drivers and looming trade risks.

The Japanese Yen recovered some ground amid fresh US-EU tariff threats and Japanese sanctions on North Korea, having knocked-off USD/JPY back to 111.30/28 region. However, the downside was limited by a late-recovery in the risk sentiment, as reflected by a bounce in the Asian equities and Treasury yields. The British Pound extended its bounce towards the 1.31 handle while the EUR/USD pair headed back to test the 2-week tops of 1.1275, unfazed by the tariffs talks.

No first-tier macro news from both Euroland and the UK docket, therefore, markets will continue to closely follow the latest developments surrounding the Brexit issue and UK politics for fresh trading impetus.

During early Tuesday, investors welcomed the development from the UK that favoured an amendment rejecting no-deal Brexit. However, the optimism couldn’t last long after the Financial Times reported that the US is proposing tariffs worth $11 billion on the EU products, including the Airbus.

The NA calendar also remains a thin-showing, as the US sees the only relevant release in JOLTS job openings for the month of February, dropping in at 14:00 GMT ahead of the US API weekly crude stocks data due at 20:30 GMT. Also, of note remains the FOMC member Clarinda’s speech heading into Wednesday’s key FOMC minutes release.

Both crude benchmarks remain in close vicinity to 2019 tops amid ongoing Libyan civil unrest. WTI crude oil remained supported and surged to five-month highs, beyond $64.00/barrel mark on expectations that global supplies would tighten due to civil war worries in Libya, OPEC-led cuts and US sanctions against Iran and Venezuela.

Gold on the bids just below the $1,300 mark, as news reports signalling the US-EU trade rift and likely renewed geopolitical tensions between the US and Saudi Arabia triggered risk-off. The Trump administration announced a ban on 16 Saudi nationals from entering the U.S. due to their roles in the murder of journalist Jamal Khashoggi. Saudi Arabia is still to respond to the ban and may generate news reports during the day.