The U.S. dollarForex today saw a major turnaround in the risk sentiment, as the US President Trump’s optimistic comments put hopes up for a peaceable trade war resolution and offered a fresh breath of life in the Asian markets. The Asian equities staged a comeback, led by China stocks and lift the demand for the risk assets alongside. Hence, the higher-yielding currencies shot higher at the expense of the safe-havens such as the Yen and the US dollar. The Euro also traded firmer heading into the Eurozone GDP figures.

U.S. equities turned sharply lower on Monday, reversing a positive start and led by declines in technology stocks. Investors are concerned that corporate earnings may peak this quarter as borrowing costs rise with the U.S. Federal Reserve expected to raise interest rates.

A busy EUR macro calendar for the day, kicking-off with the German employment data and Italy’s Q3 GDP figures at 09:00 GMT, which will be closely eyed, given the Italian budget woes. Also, in focus remains the Eurozone Q3 flash GDP estimate due at 10:00GMT alongside with the Eurozone confidence numbers, keeping the EUR traders on their toes heading into the German prelim CPI release at 13:00 GMT. Meanwhile, from the UK docket, the CBI Distributive Trades Survey – Realized (MoM) for Oct will drop in at 11:00 GMT.

The NA session is a thin showing data-wise, as the US docket has no first-tier macro news to offer except the US API weekly crude stocks data due at 20:30 GMT. Apart from the data, the US-China trade-related headlines and European political developments will continue to drive the markets today.

Amongst the commodities, Oil prices dropped on Tuesday morning in Asia as Saudi Arabia and Russia vowed to raise crude output, slashing market concerns over looming sanctions on Iran that kick off in November. Crude Oil WTI Futures inched down to $67.02 per barrel, while Brent Oil Futures fell to $77.06 a barrel.

Gold prices dropped to 6-day lows amid a stronger US dollar and higher US yields. Bloomberg reported on Monday that the United States is considering imposing tariffs on all remaining Chinese imports by early December if talks next month between presidents Donald Trump and Chinese leader Xi Jinping do not go well, renewing concerns over the US – China trade war.