Softer risk tones continued to prevail in the market this Wednesday, as renewed US-China trade tensions remained a drag on the risk associated space while having benefited the safe-haven Yen the most. The USD/JPY pair fell below the 110 level for the first time since end-March.

Meanwhile, amongst the European currencies, the EUR/USD pair held onto gains above the 1.12 handle, despite positive Treasury yields while the GBP/USD pair dropped near 1.3040 amid renewed UK political uncertainties.

Another light EUR macro calendar for today that kicked off with the key German industrial production data at 06:00 GMT. Recent data in Euroland and Germany allowed market participants to believe that some healing process could be under way in the region amidst the ongoing slowdown. Later in the European session, the speech by the BOE policymakers Ramsden will remain in focus amid a lack of significant economic news from the UK docket while Brexit and UK political uncertainty will continue to temper the market mood amid looming US-China trade concerns.

Later, the ECB monetary policy meeting minutes will be closely eyed for fresh hints on the monetary policy outlook, alongside with the speech by ECB’s Draghi in Frankfurt at 11:30 GMT. Further, the speech by the FOMC member Brainard will also grab some attention at 12:30 GMT. On the data front, the US EIA crude stocks data will be released at 14:30 GMT, as the US calendar remains data-thin.

Oil prices rebounded as traders weighed U.S. sanctions against Iran and news on the Sino-U.S. trade front.

Gold price rose on Wednesday as risk sentiment took another hit after the U.S. confirmed it would hike tariffs on $200 billion worth of Chinese goods. Some analysts still expect a deal to be reached at some point, but they are also concerned the increase in tariffs on Chinese imports could hurt global economic outlook and aggravate tensions between the U.S. and China, delaying the time required to strike a deal.