USD Pullback Extends, Equity Sentiment Improves

The USD pullback continues, with the BBDXY back to the 1260 level, around -0.25% lower for the session. There doesn't appear to be a clear catalyst for the move, although risk sentiment is a little more positive in the equity space, with HK/China markets seeing the greatest turnaround. US equity futures are also +0.15/+0.25% higher after holding flat at the start of the session. US cash Tsy yields continue to rise, although more so at the back end.

• Against this backdrop its interesting to observe JPY as the outperformer/leading the G10 move higher against the USD. USD/JPY tracked just below 137.00 before support emerged, the pair was last around 137.20, still -0.40% lower for the session.
• AUD and NZD aren't too far behind, both extending gains to around 0.40%. AUD/USD last around 0.6730, NZD/USD at 0.6370. NOK and SEK are up by a similar amount.