The Chinese central bank weakened the Yuan again on Friday, in the face of fresh US-China trade jitters on reports that the US delayed licenses to do business with China’s Huawei. The risk tones remained softer, as reflected by the declines in the Chinese stocks, US equity futures and Treasury yields.

Meanwhile, the Japanese yen and gold, traditional safe-havens, traded on the front foot in the Asian trades.

USD/JPY fell as low as 105.75 on risk-aversion and after the Japanese Prelim Q2 GDP surpassed market expectations. Heading into Europe, EUR/USD consolidated its overnight recovery above the 1.12 handle, but risks remain skewed to the downside amid uncertainty around the Italian political scenario. GBP/USD steadied below 1.2150, awaiting the UK Q2 GDP release among other data for fresh direction.

Following an eventful Asian docket, markets buckle up for another busy session, as the EUR calendar offers plenty of event risks that may spur some volatility.

The focus will remain on the German export figures amid US-China trade worries and Italian political risks, as a fresh Summer election looks inevitable now. Also, of relevance remains the data-dump out of the UK docket, including the Q2 GDP and Industrial Production, that could trigger fresh GBP moves.

In the NA session, the US Producers’ Price Index (PPI) will be reported at 12:30 GMT alongside the Canadian Housing Starts and the key Employment data. Later in the American morning, Bakers Hughes will publish the US Oil Rig Count data, at 17:00 GMT.

The selling pressure surrounding crude oil eased a little today and allowed the barrel of West Texas Intermediate to erase a small portion of this week's losses. After dropping to its lowest level since early January at $50.50, the WTI rose toward above the mid-$52s.

Gold prices have stalled, and the market awaits another catalyst from the trade wars to see how far lower yields can which should send gold on another journey to the upside.