The risk mood remains a little more upbeat ahead of North American trading
S&P 500 futures are up around session highs, ~0.4% higher on the day while bond yields are also sitting higher in the European morning. That has seen USD/JPY push to fresh seven-month highs around 109.90 currently, just shy of the 110.00 handle.
Meanwhile, gold is a notable laggard in all of this as the commodity is down by ~0.7% but has recovered from a bit of a heavier loss earlier in the session. That said, price is still trying to keep below its 200-hour moving average and that will be a key level to watch.
In the currencies space, the pound is continuing to stay pressured under 1.3000, as price action now starts to threaten minor support around 1.2970 with further support seen closer to 1.2950 and then towards the 23 December lows @ 1.2905-20.
The aussie and kiwi have also given up their earlier gains but the trading ranges in general are a little narrower with AUD/USD still hugging 0.6900 at the moment.
Looking ahead, it's still all about the risk mood as we look towards the US-China Phase One trade deal signing in Washington on 15 January.
So far, markets are keeping a more optimistic tone in the lead up to that but just be mindful of profit-taking activity - especially in US equities - this week.
