Forex today was centred around trade concerns and the U.S., as Trump reminded markets that more tariffs will be implemented on both Mexican imports and Chinese if he doesn't get what the U.S. requests from any agreement with either nation. Additionally, Trump was threatening sanctions over Germany’s planned gas pipeline - Nord Stream 2 from Russia.

The prevailing cautious mood was evident from declining US Treasury bond yield, which coupled with firming expectations that the Fed will eventually cut interest rates in 2019 kept the US Dollar bulls on the defensive. The safe-haven JPY benefits from fears of a further escalation in the US-China trade tensions, while EUR/USD is recovering and approaches the 1.1300 mark. On the other hand, GBP/USD remained on a back foot recently as UK politics grab the spotlight.

Given the absence of major data on the economic calendar from Euroland and UK, investors may emphasize on trade and political plays to determine near-term trade direction.

Thursday's US economic docket features the second-tier release of import prices and the usual initial weekly jobless claims, which seems unlikely to produce any meaningful impetus. Hence, the broader market risk sentiment and the USD price dynamics might continue to act as key determinants of the momentum on Thursday.

Oil prices recovered slightly on Thursday after a slump in the previous session on crude inventories data. Oil prices sank as much as 4% following the release but steadied today. The data came after the EIA slashed forecasts for 2019 world demand growth in a monthly report on Tuesday.

Gold prices rally to the day’s high near $1,337 during early Thursday, as risk sentiment remained weak, while rate cut expectations also provided continuing support. Also, positive comments for China, one of the top 2 gold buyers, further strengthened the bullion.