The sentiment across the market received a fresh lift after the US President Trump said that he feels the US-China trade talks will be successful. The resulting risk reset offered a big sigh of relief to the risk currencies the safe-haven Yen slipped across the board.

USD/JPY rebounded to 109.70 region, tracking the bounce in the US equity futures and Treasury yields across the curve. Meanwhile, the European currencies, the EUR/USD pair traded firmer but below the 1.1250 level, and GBP/USD dropped below 1.2930 on news that UK PM Theresa May is reportedly rejecting a customs union. That is a key demand by the opposition Labour party in the long cross-party talks.

After a data-empty EUR calendar a day before, today European session remains a data-packed one, that started with the German April final CPI and WPI figures at 06:00 GMT. At 08:30 GMT, the UK labour market report will be published. Moving on, the EUR traders look forward to the German ZEW survey and industrial figures that will drop in 09:00 GMT.

In the NA session, in absence of first-tier macro news, the focus will be on the US import price index data and API weekly crude stocks report due at 12:30 GMT and 20:30 GMT respectively.

Besides data, US-China trade tensions and Brexit uncertainty will be eyed.

Oil prices were higher on Tuesday as rising geopolitical tensions in the Middle East clouded the demand outlook, offsetting concerns over an escalating trade war between the U.S. and China. Oil prices gained following reports that Saudi Arabia said two of its oil tankers were sabotaged off the coast of the United Arab Emirates to undermine the security of crude supplies.

Despite the escalating trade tensions between the U.S. and China, and after China announced a retaliatory tariff-hike on $60 billion worth of U.S. goods, Gold prices dipped below the psychologically important $1,300 level on Tuesday.