The U.S. dollar was mostly softer, but consistent with this week's developments the Japanese yen and Swiss franc were laggards. Additional intervention wasn't seen and the dollar has held above JPY85.50. Japanese exporters are thought to have been helping provide a cap in front of JPY86.00.
The euro and sterling are trading near five-week highs. Look for the euro to now have support near $1.3050 as it advances toward the $1.33 area in the coming days. Sterling is keeping pace with the euro and, assuming support ahead of $1.5550 remains intact, it will likely eat through the offers in the $1.5730-50 band and stretch another cent or two. The dollar-bloc is bid and the Australian dollar is at new multi-year highs.
Asian equities rebounded from Thursday's slump, driving the MSCI Asia Pacific index higher for a third week, as technology shares gained after strong sector earnings announcements. More specifically, the MSCI Asia Pacific Index rose about 1%, with three stocks rising for each one that fell. In addition, the Nikkei 225 increased 1.2% as the yen continued its weakness, spurring demand for equities. In overnight trading, for example, Asian equities have outperformed, with Hong Kong and Japan leading the way.
European bourses were up as well, with the Greece benchmark index up nearly 1.1%. And finally, Friday's daily risk improvement may translate into U.S. gains with the S&P 500 futures up nearly 8 points.
Firmer regional stock markets led to U.S. Treasuries dipping in Asia but downside was capped on speculation that Japan may use its intervention funds to buy U.S. debt.
