Havens on Front Foot as Vaccine Trades Unwind

Markets continue to unwind the vaccine-induced reflation trades put on earlier in the week, with equities inching lower across Europe and the US - the tech sector's been recovering, while profit-taking in cyclical stocks proves a drag on most indices.

As a result, haven currencies are were the strongest performers Thursday. JPY and CHF outperformed, but EUR buying was evident throughout, as markets price out the chances of any imminent ECB rate cut after Lagarde's speech Wednesday.

GBP started, and finished, the session poorly with UK representatives stressing that significant gaps remain between EU and UK negotiators as meetings drag into the end of the week. GBP traded lower against all others in G10, with GBP/USD reverting back below 1.3150 ahead of the London close.

Focus Friday turns to Eurozone GDP & trade balance data and PPI, Uni of Michigan numbers from the US. The speaker schedule will again draw focus, with speeches due from ECB's Rehn, de Cos, & Weidmann, BoE's Bailey, Tenreyro & Cunliffe and Fed's Williams & Bullard.