At 13:30 GMT, the US economy released the building permits reading for October, at 1.46 million, higher than forecasts and the previous reading of 1.39 million. This data is positive for the US economy.

The British pound rose against most major currencies on Tuesday, to maintain its gains against the US dollar for the fifth straight day near the 4-week high it hit yesterday, buoyed by positive developments about the UK parliamentary elections set for next month.

GBP/USD rose by 0.2% to 1.2969, after opening at 1.2948 the pair hit an intraday low of 1.2942.

Sterling gained 0.4% against the dollar yesterday, its fourth daily gain and hit a 4-week high of 1.2985, buoyed by continued pullbacks in the US dollar along with positive comments by British PM Boris Johnson.

The dollar index fell less than 0.1% today, to deepen its losses for the fourth straight day, amid conflicting news about the US-China trade talks.

British Prime Minister Boris Johnson said yesterday that every Conservative Party's parliamentary candidates in the December 12 election have signed a pledge to vote for his deal with the EU for the UK's exit.

An election poll by "Good Morning Britain" showed on Monday the Tory Party leading ahead of the Labour Party by 14 points.

Prospects for the Conservative Party bagging a majority of parliamentary seats boost hopes that Johnson's Brexit deal will be implemented ahead of its deadline at January 31.

Oil prices deepened their decline as the US market opened on Tuesday, continuing for the second straight day, as doubts about the US-China trade talks ebbed the market sentiment, in addition to expectations for a surge in the US crude inventories later today in the American Petroleum Institute (API) preliminary report.

West Texas Intermediate (WTI) fell to $56.17, after opening at $56.85, and hit a session-high $57.10, and Brent fell to $61.60 a barrel, after opening at $62.22, with a high of $62.55.

WTI closed lower by 1.6% on Monday, on profit taking from a 2-month high of $58.05, and Brent futures fell by 1.9% after hitting the highest since September 24 at $63.62.

CNBC quoted a Chinese government source on Monday that the mood in Beijing about a trade deal is pessimistic as Chinese officials are concerned over President Donald Trump denying agreeing to roll back tariffs.

The long-running trade dispute between the world's two largest economies has negatively affected the global demand outlook in addition to bleak expectations.

The American Petroleum Institute (API) will release preliminary data on the US crude inventories later today, with forecasts for a rise by 1.2 million barrels, while the US Energy Information Administration (EIA) will reveal the official data tomorrow, with forecasts to rise for the fourth straight week.

The US dollar rose against its rivals during the European session on Tuesday, to head for its first daily gain in 4 days, in recovery attempts from 2-week low, amid conflicting news about the US-China trade talks, and ahead of important data about the US housing market.

The dollar index rose by 0.1% to 97.89 points, after it opened at 97.81, and hit an intraday low of 97.75.

The US dollar lost 0.15% yesterday, to post its third straight daily loss, and hit a 2-week low of 97.68, as sell-off continued on the US currency against a basket of currencies.

Markets are closely monitoring the continued developments in the US-China trade talks, amid conflicting news about the first phase of the trade deal.

President Trump administration on Monday issued new extension by 90 days for the US companies exemption to continue supplying the Chinese tech giant "Huawei" with necessary products.

Otherwise, CNBC quoted a Chinese government source on Monday that the mood in Beijing about a trade deal is pessimistic as Chinese officials are concerned over President Donald Trump denying agreeing to roll back tariffs.

Investors await several key data on the US housing sector later today, which is one of the most important sectors in the country, should the data came positive the US dollar will continue its recovery from the 2-week low.

At 13:30 GMT, the building permits reading will be released, with forectas to hold at 1.391 million in October with little change from the previous reading, and the housing starts is expected to rise to 1.320 million vs. 1.256 million.