Broad-based US dollar rebound was the main underlying theme in Tuesday’s trading, as better risk tones sent the Treasury yields higher in tandem with the US equity futures. However, the Wall Street turmoil kept the Asian equities on the back foot while Gold prices headed towards six-year highs above $1,520 levels.

Markets continued to weigh in the Hong Kong protests and Argentinian crisis.

Amidst improved risk sentiment and broad USD comeback, the Yen and the Euro slipped. The USD/JPY pair bounced-back towards 105.60 region while EUR/USD kept the recent range play intact but failed to resist above the 1.12 handle yet again. GBP/USD also turned lower towards the mid-1.20s amid looking Brexit anxiety and ahead of the key UK employment data.

Tuesday’s EUR macro calendar is a hectic one after a data-dry Monday’s docket. Economic news started with the German Final Consumer Price Index (CPI) and Wholesale Price Index (WPI) released at 06:00 GMT. Later in the European session, the UK Employment and Wage growth data will hog the limelight, dropping in at 08:30 GMT, following last week’s bleak UK Q2 GDP report. An upbeat UK labour market report could offer the much-needed respite to the GBP bulls. The next in focus are the German and Eurozone August ZEW surveys, the results of which are likely to have a major impact on the shared currency.

The NA session offers the critical US CPI report for July among other minority reports ahead of the US American Petroleum Institute’s (API) Weekly Crude Oil Stock data due on the cards at 20:30 GMT.

Despite a data-busy day, the risk sentiment is likely to be the main market driver, in the wake of lingering US-China trade worries and UK political developments.

Crude oil prices started the new week under modest pressure but was able to gain traction looking to extend its winning streak into a third straight trading day. Although the dismal global economic outlook and concerns over its negative impact on the energy demand make it difficult for crude oil to rise sharply, OPEC and its allies continue to voice their commitment to balance the oil market by reducing supply.