Havens on the front foot as US yield curve....>

FOREX: Havens on the front foot as US yield curve inverts

-Safe haven currencies including the JPY and CHF traded particularly well

Wednesday, going a long way to reversing yesterday's sharp risk-on move. Havens

rallied as markets watched the US 2yr/10yr yield curve invert for the first time

since 2007, as cratering long-end yields fell sharply, pressing the 30yr yield

to an all-time low. This sapped some strength out of the greenback, but losses

were minor as the dollar gained a risk-off bidtone.

-Lower commodity and equity markets (the three major US indices fell as much as

2.5%) pulled the rug from under high beta FX, pressing AUD/USD to the week's

lows and within striking distance of the cycle low printed in early August at

$0.6677. Despite obvious political difficulties, GBP rode out the storm

relatively unscathed, as markets took confidence from inflation data that

confirmed real wage growth carried through into H2 this year. GBP/USD bulls

still eye $1.21 for direction.

-Australian jobs data, UK & US retail sales and US industrial production are the

data highlights Thursday. Norges Bank rate decision is also on the docket.