Risk aversion is the name of the game as we begin the session
The yen is the strongest performing major currency as equity markets are slumping due to fresh concerns about the health of global economic growth. Chinese equities are extending losses to 4% on the day ahead of the close now and that will continue to fuel further negativity in European assets later today.
The franc is also a beneficiary from the risk aversion we're seeing, but its gains are more measured compared to that of the yen. The euro is also holding a bit steady in light of yesterday's decline, as EUR/USD holds above key daily resistance for now.
That said, trading ranges remain relatively narrow and the dollar is also holding rather steady on the day ahead of US non-farm payrolls data later. That will be the next key event for markets to react upon following the more pessimistic risk tones we're seeing to start the day.
