The renewed US-China trade tensions, escalating Hong Kong protests and poor macro news from leading Asian economies once again induced a risk-off market profile this Thursday. Markets witnessed a shift in the risk sentiment, with the Asian stocks and Wall Street futures falling back into the red zone while Treasury yields pared back gains.
The flight to safety puts a fresh bid under the US dollar across its main peers while gold prices also firmed up slightly to trade above $1,460 levels.
The prevalent risk-off sentiment dragged USD/JPY lower to hit weekly lows near 108.60. Meanwhile, the EUR/USD pair remains pressured around the 1.10 handle while the GBP/USD pair slips below 1.2850, as markets await fresh economic releases for the next direction.
Another hectic EUR economic calendar that started off with the key German Preliminary Q3 GDP release, dropped in at 07:00 GMT. Next of relevance remains the UK Retail Sales data for October lined up for release at 09:30 GMT and Eurozone Preliminary Q3 GDP report at 10:00 GMT. Amid the data releases, speech by ECB Vice President De Guindos and UK political developments will be closely watched.
However, the main market driver will continue to remain the US-China trade negotiations, especially after the WSJ reported on Wednesday that the US-China trade talks have hit a snag over farm purchases. Besides, the US PPI and Jobless Claims data, due at 13:30 GMT, will keep the NA traders busy.
Oil prices are on the rise amid speculation about the next move by OPEC+. EIA Crude Stocks data due on the cards at 16:00 GMT.