Turnaround In Risk Reduces Demand For Safe Havens

The greenback lost its allure alongside other traditional safe haven currencies (JPY, CHF) as U.S. e-mini futures made their way back into positive territory and yesterday's risk aversion fizzled away.

• Tech names led gains in the equity space after Samsung reported a larger than expected jump in revenue, lending support to the shares of regional chipmakers and the wider risk sentiment.
• U.S. Tsy yields declined across the curve, with the 2-/10-Year sector moving off yesterday's flats (albeit it remains in inverted territory). The dollar index (BBDXY) pulled back from cyclical highs printed Wednesday.
• USD/JPY gave away its initial gains, with sales emerging into the Tokyo fix. Still, the yen was among the worst G10 performers amid reduced demand for safe havens.
• Antipodean FX paced gains in G10 FX space on better market mood, with BBG trader sources flagging a short squeeze on leveraged buying. Both AUD/USD and NZD/USD struggled to rip through yesterday's ceilings.
• Sterling remained vulnerable to the fallout from the Whitehall revolt, which extended into early Asia hours, as a flurry of resignations from UK ministers and government aides continued and the choir of voices calling for PM Johnson's resignation kept growing louder.
• The continuation of UK political drama will provide further interest in the London session, with Boris Johnson still determined to stay on despite facing mounting pressure to quit.
• Elsewhere, German industrial output as well as U.S. trade balance & jobless claims will print today, with comments coming up from a slew of Fed, ECB & BoE members.