Despite moderate risk-on action in the Asian equities and US equity futures, disappointing macro releases from China dampened the risk sentiment and capped the bounce in the USD/JPY pair at the key resistance near 109.70. EUR/USD kept minor bids above the 1.12 handle while the Pound recovered above the 1.2900 level versus the Dollar amid the renewed Brexit optimism.
The European calendar started off with the preliminary GDP figures from Germany released at 06:00 GMT, following by the Eurozone GDP figures at 09:00 GMT. The growth figures are likely to have a strong bearing on the EUR markets amid looming Euro area slowdown concerns. Meanwhile, the UK docket remains data-empty, with the Brexit-related headlines likely to offer some impetus to the GBP traders.
The NA calendar is a heavy-showing, with the key US retail sales due for release at 12:30 GMT, followed by the US industrial production and capacity utilization data dropping in at 13:15 GMT among other minority reports. Next of relevance remains the US EIA weekly crude stocks data, due on the cards at 14:30 GMT, for fresh oil trades.
Oil fell on Wednesday after data showed a surprise rise in U.S. crude stockpiles and as Chinese industrial output grew less than expected in April, but prices were supported by mounting tensions in the Middle East. U.S. West Texas Intermediate crude futures were at $61.33 per barrel as of writing.
Gold prices traded modestly flat around the $1,296 level amid upbeat comments from the US President Trump and his Chinese counterpart Xi on trade. Fading safe-haven demand prompted some long-unwinding trade for the second-straight session, but weaker US bond yields and subdued US Dollar price action extend support and help limit deeper losses. Moving ahead, market participants now look forward to Wednesday's US economic docket - highlighting the release of monthly retail sales data, for some fresh impetus and to grab short-term trading opportunities.