The incoming trade-related headlines continued driving the broader market risk sentiment through the early session on Thursday. Meanwhile, a Bloomberg report that the US is considering a currency agreement with China as a part of partial trade deal led to an intraday turnaround in the risk sentiment and forced traditional safe-haven assets to surrender a major part of the early gains.

The recent price action offers a preview of the market reaction that might follow at the end of the crucial high-level US-China trade negotiations.

On the other hand, the US Dollar remained on the defensive amid firming market expectations that the Fed will deliver another interest rate cut at its upcoming policy meeting on October 29-30. Minutes of September FOMC meeting, released on Wednesday, noted that downside risks to the outlook for economic activity has increased somewhat and did little to influence dovish expectations.

A couple of data points to move things along in the European morning but the key focus in markets will be on what will happen in Washington later today. The minutes of the European Central Bank's (ECB) September policy meeting is scheduled for release at 11:30 GMT.

From the UK, the release of monthly GDP print along with manufacturing and industrial production figures will play a key role in driving the British Pound. Barring any knee-jerk move, the market reaction to the UK macro data is likely to remain limited amid persistent uncertainties surrounding Britain's exit from the European Union.

Apart from the incoming trade-related headlines, Thursday's important release of the latest US consumer inflation figures will influence the USD price dynamics and produce some meaningful trading opportunities.

Oil has been under pressure in Asia and spike to a fresh daily low following the trade talks headlines which sparked off a risk-off session today.

Gold eases from 1-week tops, still comfortable above $1,500 mark as the precious metal managed to regain some positive traction during the Asian session on Thursday in the wake of reviving safe-haven demand amid nervousness ahead of the resumption of the crucial high-level US-China trade talks.