A couple of U.S. data points have forced several bears to rethink the prospects for the world’s largest economy. Strength in consumer sentiment and manufacturing output have also lowered demand for dollars for fear of a second recessionary wave.

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Better Tone to Risk Appetite Masked by Yen Strength

We’ve been strident about the idea that global growth decoupling from the US is a myth. The idea being the US consumer is still the primary demand engine for the world, and Mr. US Consumer becomes all the more important as European demand heads into its austerity shell

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Risk On: China Leading PMI Ccould be Good Thing for Growth

Bonds are facing a time of indecision on Thursday. U.S. initial claims came in lower than forecast and just as a rebound in confidence among investors for riskier bets around the world began to sap demand for fixed interest payments.

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Bonds Face Profit-Taking as Dealers Await Bernanke Address