The dollar held on to recent gains against its major peers on Tuesday, supported by a recovery in investors' risk appetite, which gave an overnight boost to U.S. yields. Trading is likely to remain subdued in Asia with many markets across the region closed for Lunar New Year holidays for much of the week.

The Yen halted Dollar’s upside move once again ahead of the 110.00 handle, as the sentiment turned sour amid fresh selling seen in the US equity futures and Treasury yields. The overall improvement in the risk appetite helped the Dollar against the Pound, as traders remained cautious ahead of the UK services PMI release. Euro remained flat at $1.1430, off the three-week high of $1.1515 set on Thursday.

The final services PMI reports from across the Euro area will dominate the EUR macro calendar that will be followed by the key UK services PMI release at 09:30 GMT. At 10:00 GMT, the Eurozone retail sales data will be reported, which is likely to show a sharp drop in the bloc’s consumer spending for the month of December.

The NA session is also a busy one, with the US ISM non-manufacturing and Markit services PMI for the last month at 15:00 GMT. Also, of note remains the API weekly crude stockpiles data that will drop in at 21:30 GMT.

Oil prices inched up on Tuesday, buoyed by expectations of tightening global supply due to U.S. sanctions on Venezuela and production cuts led by OPEC. WTI crude futures were last seen at $54.77 per barrel, while international Brent crude oil futures were at $62.72 a barrel. It is expected that the U.S. sanctions on Venezuela had focused market attention on tighter global supplies.

Gold is reporting moderate gains in Asia after the recent declines caused by the upbeat U.S. January jobs report and manufacturing numbers. The precious metal remained firm in the $1,300 territory, with enough resilience to make new 2019 highs thanks to the Federal Reserve's promise to be patient with rate hikes, say some analysts. In addition, it is considered a safe haven, either as a hedge against a further U.S. fallout with China or a direct bet that a trade deal between the two countries would not happen.