ZFX: Signs of recovery? Risk-on trades dominate?

The Non-farm Payroll figures last Friday showed a surprising improvement in the labor market of the US. Risk appetite was further boosted by the hopes of global economy recovery, dragging down the safe-haven demand.

In European session on Monday, non US currencies like Euro, Aussie and Kiwi all slightly rose as the market sentiment has improved.  Although there is still concern over US-China tension, RMB is still trading higher due to the weakening dollar.

However, the dollar is trading higher against the yen, that mainly supported by the gain of the long-term Treasury yields. The US 10-Year Treasury yield is ranging at around 0.9% on Monday, which hit the gold price as well.

Investors are now looking forward to the FOMC meeting on Wednesday. It is reported that the Fed may manage the “Yield Curve” by its unlimited QE policy.