Inter-market: Strong risk appetite profile early Europe

By FXStreet Risk/commodity currencies the likes of the Australian Dollar, Canadian Dollar or Sterling continue to be on a tear against the US Dollar or Yen, as the risk appetite environment improves in early European session, tracking the solid gains seen during Asian hours.

‘Risk on’ big style

The S&P 500 futures are trading up by 0.2%, the DAX has jumped higher by over 0.8% in the first hour of trading in Frankfurt, the US 30-year Treasury yield continues to adjust its divergence against the 2-y US yield, while the rest of sovereign bonds in the G10 complex are also selling-off underpinning the risk on environment.

USD, JPY losers; AUD, GBP winners

Amid the current scenario, the Japanese Yen is the main loser, followed by the US Dollar, while the Euro, considered a ‘risk off’ currency, is surprisingly putting on a solid performance,, partly supported by the steep rise in the 10-year German bond yield. The British Pound, supported by the latest Brexit poll, together with the Aussie, higher in response of the RBA minutes, are the major beneficiaries of Tuesday’s action so far.
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Source:: FX Street