China's Commerce Ministry was out with a statement in the last hour, saying that the US and China have agreed to cancel existing tariffs in different phases. The comments helped offset the overnight report, suggesting that phase one deal might be delayed until December and led to a turnaround in the global risk sentiment.
The US dollar regained the bids across the board while the commodities wilted on trade doubts-led risk-aversion. The ultimate safe-haven gold treaded water below 1,490 levels, with the immediate upside by 50-DMA, while, Oil prices remain after pressure as OPEC and non-OPEC countries seem unkeen on cutting production.
Amongst the major pairs, USD/JPY rallied around 50 pips in the last hour and refreshed session tops, with bulls looking to extend the momentum further beyond the 109.00 handle. European currencies, the EUR/USD and Cable are on the back foot, with the Fiber holding above 1.1050 while the latter reached weekly lows sub-1.2850 amid renewed UK political jitters and ahead of the key Bank of England’s (BOE) “Super Thursday”.
In absence of first-tier macroeconomic releases from the EUR calendar this Thursday, the BOE monetary policy decision accompanied by its minutes and Quarterly Inflation Report (QIR) will hog the limelight at 12:00 GMT ahead of the BOE Governor Carney’s presser scheduled at 12:30 GMT.
The UK central bank is unanimously expected to remain on-hold in its pre-election meeting. However, markets expected the central bank to lower its growth and inflation forecasts amid uncertainty over the Brexit outcome.
The NA session also remains data-light, with the only US Jobless Claims release at 13:30 GMT of note among other minority reports. Also, the speech by the Fed official Kaplan, scheduled at 18:05 GMT, will be closely eyed for fresh dollar trades. Although the USD price-action and the risk trends will continue to be driven by the US-China trade developments.