The U.S. dollar was softer across the board Thursday vs. the majors as markets regain a semblance of calm after Federal Reserve Chairman Ben Bernanke's comments Wednesday. Markets await Friday's stress test results, and no further leaks have been heard yet Thursday.

The euro has recouped some of its losses in the European morning as the 1.27 area holds for now. The yen was mostly softer, suggesting risk-aversion has eased, while the Swiss franc is mostly firmer. Emerging markets currencies were firmer, with Eastern European currencies leading the way after Wednesday's losses. Hungary is the top performer there, helped by a successful sale of HUF50 billion in 12-month bills, albeit at higher rates.

Biggest gainers on the day so far vs. the dollar are HUF, NOK, CZK, AUD, and PLN, while the only losers vs. the dollar so far Thursday is TWD. Markets again pare back yuan appreciation views to the lowest since June 9.

Asian markets were mixed, and the MSCI Asia index was basically flat Thursday. China, Hong Kong, India, and Singapore markets rose, while Japan, Korea, and Taiwan underperformed and were down on the day. European markets were higher Thursday, helped by strong European data with Euro Stoxx 50 up almost 2% so far. Futures markets were pointing to an up open for U.S. equity markets Thursday.

The U.S. bond market is likely to hang on recent gains Thursday if U.S. data Thursday continues to come in weak. Japan's bond market was higher as 10-year yields fell 3 basis points, while European bond markets were mixed as 10-year yields in the U.K., France, and Germany were flat, down 1 basis points, and flat, respectively.

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