The currencies market is shaping up to be risk-on
The aussie and kiwi are leading gains on the day with a more positive risk sentiment in equities contributing to the two currencies' strength thus far. The aussie is also buoyed by higher iron ore prices as it only helps to fuel the country's improving terms of trade.
Chinese stocks are up by over 2% as we head towards the close while US equity futures are up by 0.2%. That should see slight gains in European equities later which should help to underpin risk currencies as we begin the morning.
The yen is on the back foot as a result, with US Treasury yields holding slightly higher currently as well. There isn't much on the data docket to move things along today so I would expect risk to stay buoyed until North American traders join in, so we could be in for a quiet extension of the trading theme at the moment in the European session.
