Risk currencies remain underpinned while the yen lags behind
Markets are in a more cheery mood to begin the day with equities trading higher and that is helping to lift sentiment across risk assets as European trading gets underway. As a result, the aussie and kiwi are among the leaders though trading ranges are still not really stretched just yet.
The pound is also among those leading the charge as it continues to feed off the rhetoric of a possible extension in Article 50 and May's mention yesterday of no Brexit having a greater risk than a no-deal Brexit at this point. It's still early in the day as the meaningful vote is set to come about later in the evening so expect headlines during the day to possibly add some volatility to the quid in due time.
Meanwhile, the Japanese yen is the currency that is lagging behind as risk improves. Treasury yields are a tad higher while US equity futures are trading near session highs up by about 0.7% and that is helping to underpin yen pairs to start the day.
European equities look set to carry on with the mood but do take note that sentiment remains fragile so be wary of any potential setbacks in the session to come. With markets keeping a keen eye on the pound, expect other currencies to make less of a splash in the day ahead.
