The Chinese and Hong Kong authorities continued to warn the US of retaliation after US President Trump signed the Hong Kong human rights bill into law on Thanksgiving Thursday. The risk sentiment remained fragile on the US-China political tensions, but failed to budge the markets, as thin liquidity and minimal volatility are likely to extend, with the US markets closed on Thanksgiving Day.

The mixed action in the Asian equities, a broadly subdued US dollar and losses in the S&P 500 futures collaborate to the caution trading seen in the Yen pair. Meanwhile, gold prices received some fresh signs of life amid softer risk tones but remained below $1,460 mark.

Both the European currencies, EUR/USD and GBP/USD benefited from the renewed US dollar weakness while the pound cheered the You Gov (MRP) poll that showed the UK PM Johnson remains on course to win the Dec 12 election with a majority.

Markets gear up for a busy EUR economic calendar, as a slew of Eurozone economic sentiment and confidence indicators will be published at 10:00 GMT. The focus in Europe will be the German Preliminary Harmonized Index of Consumer Prices for November, dropping in at 13:00 GMT.

Meanwhile, the NA session will be quiet amid US Thanksgiving holiday-thinned trades. Therefore, markets will look forward to the Canadian Current Account data lined up for release at 13:30 GMT, followed by the speeches from the ECB policymakers Coeure, Weidmann and Lane.

Oil remains below $58.00 during early Thursday, as trade war fears join the previously released EIA inventory report. Absence of the US traders could restrict the market’s reaction.

In the meantime, the primary market driver will continue to remain the US-China trade and political-related developments, with China expected to announce retaliation against the US’ interference in Hong Kong’s internal matter.