The JPY and USD have seen some marginal weakness overnight in Asia with risk appetite intact. EUR/USD is up at 1.4055 from a North American close Thursday around 1.3990, while EUR/JPY is up at 134.70 from around 134.20. Asian stockmarkets have made gains, albeit workmanlike rather than anything too stellar.
Risk sentiment has been underpinned by the realisation the Fed has no intention of lifting US rates anytime soon. The release of upwardly revised US Q-1 GDP data has also lent some small support. There has also been some relief that Fed Chairman Bernanke withstood his questioning by Congress over BofA/Merrill deal.
Very little of real note on the European economic data front this morning, so it looks likely we’ll see trading confined to relatively narrow ranges barring any major surprises, like an aggressive follow-up bout of SNB/BIS intervention in USD/CHF, EUR/CHF at these elevated levels.
