The aussie and kiwi leads gains while the yen and franc lag behind
Markets are adopting a more risk-on mood as we begin the European morning following renewed hope/optimism on US-China trade relations. Equities are surging ahead as a result while Treasury yields are sharply higher across the curve.
US futures are up by 1.0% while 10-year yield are up by 4 bps to 1.506% with 30-year yields notably moving back up above 2.00% currently.
As a result, the aussie and kiwi remain buoyed in the currencies space with the former challenging key resistance against the dollar just above 0.6800 today.
Meanwhile, the franc and the yen are the laggards amid the more optimistic risk mood with USD/JPY seen just above 106.50 at the moment.
Looking ahead, the pound will once again be a key focus in markets after Boris Johnson suffered a triple defeat but it is now over to the House of Lords to see if the bill to avoid a no-deal Brexit can be turned into law before parliament is prorogued.
Besides that, the risk mood will remain a key factor in affecting trading sentiment as well so be wary of more potential trade headlines as we slowly navigate our way towards the US non-farm payrolls release tomorrow as well as Fed chair Powell's speech in Zurich.
