We're seeing a risk selloff as equities slump but so is the dollar at the moment. Instead, bonds are finding more bids while the Japanese yen and Swiss franc are the preferred plays in the major currencies space. USD/JPY is down 0.6% on the day now to 149.48 and is it time to close the gap from last Monday's open?
A hold below the 150.00 mark will certainly keep sellers very much interested. That especially with price action also tripping below the 50.0 Fib retracement level of the swing higher to start October trading.
This is all coming as 10-year Treasury yields are sticking with the break under 4%, falling further to 3.93% on the day.
Elsewhere, EUR/USD is up 0.1% to 1.1700 with large option expiries offering up some pull while USD/CHF is down 0.5% to 0.7890 on the day. Even as the dollar struggles though, commodity currencies are worse off amid the risk-off mood in markets today with AUD/USD down 0.5% to 0.6453 currently.
S&P 500 futures are now down 1.2% while in Europe, the DAX is posting 2% losses so far to start the session.
