US dollarMarkets remained on the edge while heading into the much-awaited US-China phase one trade deal signing ceremony due today at 16:30 GMT. The safe-havens – gold and the yen drew bids at the expense of the higher-yielding assets such as the regional equities, Wall Street futures and emerging currencies.
Across the fx board, most majors maintained tight trading ranges amid a broadly subdued US dollar and in absence of risk appetite. However, GBP/USD looked better-off, as it held onto its recovery gains above 1.3000. EUR/USD continued to probe the 1.1135/40 resistance area amid ongoing US-EU trade conflict. The anti-risk yen traded better bid above 110.00 vs. the US dollar, as the losses in Treasury yields kept USD/JPY under pressure.
Gold prices extended the recovery mode and rose 0.40% to regain the 1550 handle, while WTI holds above $58, lacking a clear directional bias.
The main event risk for the EUR, GBP traders in the European session ahead remains the UK December Consumer Price Index (CPI) data due at 09:30 GMT. Also, of note remains that Eurozone Industrial Production and Trade Balance data, dropping in at 10:00 GMT.
The NA session is an eventful one, with the US-China phase one trade deal signing ceremony to steal the show amidst the release of the US Producer Price Index (PPI) data at 13:30 GMT. The speech by the Fed official Harker also remains in focus ahead of the Fed’s Beige Book publication at 19:00 GMT.
The developments around the imminent US-China trade deal will continue to remain the main market driver.