Euro is back on the defensive amid the rising demand for haven yen. Intensifying rhetoric between Washington and Beijing dampened hopes for this year’s trade deal. More tit-for-tat tariffs have the potential to escalate in a global recession. Weighing on the single currency, a poor industrial output contracted in Germany more-than-expected with data showing a 1.5% decline in June. Pair fell below the 119.00 level. The downside bias will persist until some of the relief does not come from the trade developments or the Japanese government decides to intervene.