The optimism over the US tariffs delay on the Chinese goods faded in the early trading this Wednesday, as mounting concerns over the Hong Kong political risks and a big miss on the Chinese activity numbers kept the risk sentiment somewhat frag.

The safe-haven Yen was the biggest gainer, with USD/JPY downed to 106.25 levels before recovering above the 106.50 region towards Asia closing amid a pullback in the US equity futures and Treasury yields. Both the EUR/USD pair and GBP/USD traded little changed and held the recent lower ground amid a broad-based US dollar upside consolidation.

Another data-busy European calendar keeps markets prepared for some action, as the UK CPI reports at 08:30 GMT and the Eurozone Q2 Preliminary GDP, industrial output and jobs data, will be published at once at 09:00 GMT.

The US docket remains relatively lighter, with the only Import and Export Price Index on the cards at 12:30 GMT. The Energy Information Administration (EIA) weekly Crude Stocks data will also grab some attention amid fresh US-China trade news, UK political developments and the US President Trump’s comments.

Oil is feeling the pull of gravity at press time, having failed to close above the falling channel resistance on Tuesday. On the daily chart, WTI is trapped in a falling channel. A bearish channel breakout, if confirmed, would create room for a rally to $60.00.

Gold prices, traded muted around $1,500 levels, awaiting fresh trade and political headlines for the next direction.