The key question remains though, can this keep up?
Equities are battling back strongly after the sharp drop seen in trading yesterday, with S&P 500 futures now up by 4.7% on the day. It is still a bit early to derive anything from the move but so far this is keeping risk in a better place after the meltdown overnight.
USD/JPY is back up to 104.65 while European equities are posting gains over 3% now, putting light pressure on the franc as USD/CHF climbs to 0.9340.
The yen and franc are not near their lows for the day but they still remain weaker as we look towards North American trading in a few hours from now.
That said, I would still argue that sentiment hasn't quite turned the corner just yet.
Sure, the recovery today looks good after the drop yesterday but the market never moves in a straight line. Given the current economic backdrop and the virus outbreak, chances are come Friday we'll be staring at a screen covered in red rather than one similar to today.
