Fresh optimism on the US-China trade front on likely US-China trade talks in October offered an additional boost to the risk sentiment in Thursday’s trading. Both the US and Chinese trade teams confirmed about the trade progress, which saw the anti-risk Yen downed across the board alongside the safe-haven gold.
USD/JPY jumped nearly 40-pips to two-week highs of 106.75 after the US equity futures and Treasury yields extended gains on trade headlines. 1.32 handle.
EUR/USD stalled its upside on 1.10 handle and consolidated around the 1.1035/25 region amid broad USD comeback.
GBP/USD fell back below the 1.2250 level ahead of the Brexit debate, consolidating its gains seen after the bill to block a no-deal Brexit passed the House of Commons.
The European calendar starts with the ECB’s Vice President De Guindos speech at 07:00 GMT and will be closely heard ahead of next week’s ECB policy meeting.
The UK docket remains empty and hence, the Brexit-related developments will continue to steal the limelight. All eyes will be on the UK Court hearing on forcing no-deal Brexit and the House of Lords debate for fresh impetus.
The NA session is packed with a host of US macro releases, including the weekly Jobless Claims, ADP Employment Change, Markit Services PMI, ISM Non-Manufacturing PMI and Factory Orders data. Further, the Energy Information Administration Weekly Crude Stock data will be reported at 15:00 GMT.
Markets also look forward to the speeches by the BOE’s policymaker Tenreyro and BOC board member Schembri while fresh US-China trade headlines will continue to remain the main market driver.
Both crude benchmarks consolidated the previous surge while Gold prices fell back below $1,550 levels amid risk-on.