Spillover session sees risk-on extend.........>

FOREX: Spillover session sees risk-on extend

-USD/JPY inched to new 2020 highs Thursday as the risk-on move that gathered

pace on Wednesday extended into a second session. New alltime highs at the open

for US equities underpinned the risk bid, which kept the greenback on the front

foot and pressured EUR/USD briefly below the $1.11 mark. CAD underperformed also

as key resistance layered ahead of C$1.31 gave way.

-GBP underperformed, with GBP/USD slipping through $1.3050 following a speech

from BoE Governor Carney titled "A Framework for All Seasons?". In the speech,

Carney talked up the ample downside policy space available to the MPC, judging

that the Bank have the equivalent of 250bps of policy space with which to combat

any downturn. Carney added that the MPC could give a "prompt response" to any

lasting signs of economic weakness, adding to the bid in UK fixed income and the

downturn in GBP.

-US nonfarm payrolls steal the spotlight Friday, but some attention will also

likely be paid to French and Italian industrial production and the Canadian jobs

report also. BoE's Tenreyro is also due to speak.