Taking Breather After Wednesday's Risk Retreat

Commodity FX outperformed in the G10 basket as risk appetite took a breather after yesterday's rout. The FX space watched e-minis move higher amid light news flow, with some noting an FT source story suggesting that "the U.S. is allowing a growing number of chip companies to supply Huawei with components". Major crosses generally swam with the mild, broader risk-on tide, with little in the way of violent price swings.

• JPY was the worst performer among G10 currencies, but EUR/JPY failed to re-test neckline of the double top pattern confirmed yesterday. The currency shrugged off the BoJ's decision not to touch policy levers this time, in line with expectations.
• USD/CNH went offered despite a softer than expected PBoC fix (CNY6.7260 vs. BBG est. of CNY6.7234). As a reminder, CPC Central Committee wraps up its four-day meeting today and should unveil the next five-year economic plan as well as a longer-term strategy through 2035.
• USD/KRW re-opened higher, as positive local news came with caveats, before trimming gains on the back of wider sentiment. The BoK's business confidence gauges improved, but remain considerably below the neutral 100 level, while Samsung's Q3 profit beat was accompanied by negative outlook for Q4.
• Focus turns to ECB MonPol decision, U.S. initial jobless claims & advance GDP, German unemployment & flash CPI, EZ sentiment gauges & Canadian building permits. Central bank speaker slate includes ECB's Visco & Villeroy.