The overnight US-China trade optimism was watered down by the comments from the White House Adviser Navarro that curbed the risk appetite across Asia. The market mood turned sour after Navarro denied any agreement on the removal of the existing tariffs on China, with the Asian equities paring back the early gains.
Treasury yields also pulled back from three-month tops while US equity futures dropped about 0.30%. The US dollar, however, remained closed to three-week highs vs. its main peers. The safe-haven Yen recovered from half-yearly lows vs. the greenback but the USD/JPY bulls manage to defend the immediate support near 109.15. EUR/USD and GBP/USD trade almost unchanged, as they take a breather after a volatile session witnessed a day before.
The US-China trade deal-related updates will continue to play and have a strong bearing on the risk sentiment, eventually impacting the FX board amid a lack of data in the European docket.
The NA session sees the US Wholesale Inventories and the key Preliminary Michigan Consumer Sentiment Index lined up for release at 15:00 GMT. Meanwhile, the speech by the Fed Official Brainard will be closely heard after the hawkish comments from the Atlanta Fed President Bostic delivered in early Asia. For the oil market, the Baker Hughes US Oil Rig Count data will be next of relevance.
Oil is seen wavering below the $57.00 handle on Friday as the US-China trade deal progress outweighs large US crude inventory build.
Gold edged higher on the last trading day of the week and built on the overnight late bounce from over one-month lows. The yellow metal took a sharp knock on Thursday in reaction to positive trade-related developments, however conflicting reports helped limit further losses, rather regain some traction.