Market witnessed improved risk tones amid no-deal Brexit defeat in the UK Parliament, and as indicated by mostly higher Asian equities, bounce in the Wall Street futures and Treasury yields.
USD/JPY regained the 106.00 handle as the Yen traded on the back foot, despite upbeat Japanese Services PMI data, as Bank of Japan board member Kataoka’s comments weighed alongside better risk appetite.
EUR/USD keeps the recovery mode intact below the 1.10 handle amid disappointing US ISM PMI-led broad USD weakness.
GBP/USD holds mild gains near 1.2100 on PM Johnson’s government defeat, awaiting the UK Services PMI release.
Wednesday’ EUR macro calendar remains a busy one, as a raft from Services PMI reports will be published from across the Euro area economies and the UK. The PMI numbers started trickling in from 07:15 GMT. The focus will be on the nominated European Central Bank President Lagarde’s speech. Lagarde is due to speak in front of the Committee on Economic and Monetary Affairs of the European Parliament.
Also, the UK Services PMI, due at 08:30 GMT, will be closely eyed for fresh GBP moves, as another vote to stop the Brexit negotiations with the EU looms.
The NA session sees the US trade reports at 12:30 GMT. A slew of speeches from the ECB and Federal Reserve officials will also highlight the American session ahead of the American Petroleum Institute’s weekly Crude Stock data due at 20:30 GMT.
Despite a busy docket, any fresh US-China trade headlines and US President Trump’s comments will keep the markets on the edge.
Oil recovers amid fresh trade and political risks while Gold is currently trading at $1,543 as it seeks fresh clues to extend the latest recovery beyond multi-year high flashed during the previous month.