Calmer tones setting in after the risk rally overnight
The yen is mildly higher as the overall risk mood is more tepid as we begin European morning trade. US 10-year yields are down 1.7 bps to 1.582% currently while US futures are also a tad lower, down by 0.2%, as we get things going.
It is a bit of minor pullback after the solid gains yesterday. Meanwhile, the dollar is keeping more steady but there is little change of note so far as major currencies are trading narrowly against one another to start the new day.
USD/JPY is seen just under 109.50 while GBP/USD is keeping just above 1.3000 amid choppy trading since yesterday. USD/CAD continues to rest just below 1.3300 as the traders battle with the better risk mood amid more subdued sentiment in the oil market.
AUD/USD is a tad higher but keeps below the 200-hour moving average (but above the 100-hour moving average) while NZD/USD is stuck in between both key daily moving averages just as price sits below 0.6500 for the time being.
This all still points to some push and pull to try and break the deadlock in risk currencies, so we will have to see how the situation develops in the coming days/week.
The market is taking the coronavirus headlines in stride for now but there is a sense of fear about complacency and greed and that should not be underestimated.
