The People’s Bank of China set its daily midpoint fix at strongest mark since August 8th, at 7.0080 per dollar. CNBC reports that “The probability of a September (tariff) rollback has obviously increased in the last 48 hours… today’s dollar-China fix at 9:15 (a.m. HK/SIN) was a very important signal.”

German Factory Orders increased by 1.3% in September allowing the EUR/USD pair to be traded at the 1.1080 handle. On Tuesday, the pair continued to be under pressure as it was traded beneath the 1.1100 mark. Traders now await services sector PMIs and further trade talks between the U.S. and China. 

Optimism about a positive conclusion to the trade war talks helped the U.S. Dollar attract buying interest. In addition, it was suggested that some of the tariffs previously imposed on Chinese goods by Trump’s administration may be reversed, which, in turn aided the global risk sentiment. 

A survey on the US service sector highlighted an improving business sentiment in October, leading the USD to rise. Business sentiment had hit a 3-year low in September. 

Furthermore, the Cable consolidates losses as it trades under the 1.29 handle. The GBP/USD pair saw oscillations on Tuesday and ended the day close to its starting point. After the publishing of the UK services PMI, which turned out to be better than predicted, the pair hit an intraday high level 1.2918.