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The U.S. dollar held above a three-week low on Thursday as investors remained cautious amid uncertainty over the progress in U.S.-China trade talks, while the GB Pound rallied on bets that the chance of a no-deal Brexit was shrinking. USD/JPY slid to session lows around 110.70 level, weighed down by reviving safe-haven demand, while EUR/USD remained side-lined and still below recent tops in the 1.1400 neighbourhood, depending on US Dollar dynamics and the broad risk trends for direction.

The European session starts with the CPI readings from across the Euro area economies, but the headline of the session is the German preliminary CPI figures due at 13:00 GMT, with markets gradually shifting their focus on next week’s European Central Bank (ECB) monetary policy meeting.

In the NA session, the main event risk is likely to be the first estimate of the fourth quarter US GDP due at 13:30 GMT. At the same time, the US weekly jobless claims and core PCE price index. Later in the American mid-morning, the US regional manufacturing PMI reports will be published. Among the central bank’s speakers, FOMC Vice Chair Clarida is due to speak at 13:00 GMT while FOMC member Bostic is scheduled to speak at 13:50 GMT.

WTI is on bids around $57.15, with oil holding on recent gains after the weekly report from US EIA registered drawdown. Additionally, OPEC members’ refusal to respect the US President Donald Trump’s comments demanding supply increase also helped Crude prices. Looking forward, investors may now put high importance on developments surrounding the US-China trade talks as recent reports were downbeat ahead of the likely Trump-Xi meet.

Gold lacked any firm directional bias and was seen consolidating the overnight slump to over one-week lows. A strong upsurge in the US Treasury bond yields helped the US Dollar to bounce off three-week lows on Wednesday and prompted some fresh selling around the dollar-denominated commodity. However, the precious metal steadily climbed to session tops, above $1320 level amid risk-off mood from escalating geopolitical tensions between India and Pakistan and US-China trade uncertainty.