Cautious optimism emerged the key theme across the market in Tuesday’s trading, in the wake of looming trade risks and relief-recovery in the Treasury yields and US equity futures. However, the Asian equities traded on the defensive amid growing concerns over a global economic slowdown.

USD/JPY traded weaker near 108.00, having bounced-off almost 5-month lows of 107.86. The safe-haven demand for the Yen remained buoyed amid escalating trade wars, as the US Republican lawmakers are set to block the US President Trump’s new tariffs on Mexico. On the other hand, both the European currency pairs, EUR/USD and GBP/USD traded better bid heading towards the key economic releases due later in the European session.

Today’s EUR macro calendar offers plenty of event risks, including the key Eurozone flash CPI estimate for May that will drop in at 09:00 GMT alongside the bloc’s April jobless rate. Ahead of the Eurozone data, the UK Markit construction PMI will be reported at 08:30 GMT.

The NA session, however, remains a thin showing, with the US ISM NY-Business Conditions Index for May due at 13:45 GMT. At 14:00 GMT the US factory orders will drop in and is expected to show a sharp drop in the month of April. Downbeat US data will add further to the recent USD weakness and bolster the Fed rate cut bets, as the focus also remains on the key speech by Fed Chair Powell due later today. The API crude stockpiles data due at 21:30 GMT will be also eyed for fresh oil trades.

Following a three-day decline, Oil halts additional downside as it clings to $53.00 during early Tuesday. While receding tensions between the US and Iran dimmed prospects of an energy supply crunch, doubts over future economic growth, amid trade tension and speculations of the Fed’s rate cut, raised chances of the energy benchmark’s demand depletion.

Gold futures retreated from 10-week tops and traded below $1,330 levels but remained on the bids as fears of the global slowdown and a Fed rate cut negatively affect risk sentiment. Looking forward, comments from the Fed Chair Jerome Powell will be closely observed to reconfirm bearish bias over the Fed’s future moves while news reports concerning the global trade can keep entertaining the bullion traders.