UK virus worries dampen the mood in Europe
- German DAX futures -1.4%
- UK FTSE futures -1.3%
- Spanish IBEX futures -1.7%
That reaffirms the more risk averse tone as we approach European morning trade today, with 10-year Treasury yields also seen down 2.5 bps to 0.921%.
US futures are less fazed amid a stimulus deal set to be sealed in Capitol Hill, though less than anticipated, with S&P 500 futures down 0.2% and Nasdaq futures up 0.2%.
In the currencies space, the pound is hammered lower as cable sits near 1.3350 in the past couple of hours and still holding close to the 61.8 retracement level of its recent swing higher since 11 December @ 1.3322.
Meanwhile, the dollar is firmer across the board as we see a modest pullback following the continued rout in the greenback in recent weeks. For some context, here's a look at how major currencies have performed against the dollar from November up until last week:
So, there is a solid argument that any slight retracement/pullback is in order.
