Given the sharp nature of this mornings’ rally, there are very likely still traders who are trying to cover shorts on the pullbacks. The bounce back to 1.4305 from a dip to 1.4293 suggests this remains the case.
Oil remains pressured, down $1.71 to $98.39 and equities are at breakeven, providing few signals to currency trades at the moment.
US yields have shed all their gains from early in the day and are now lower. 10-year notes yield 3.17%, down from 3.24% early in the day before the deluge of weak data at 14:00 GMT. Lower yields are a big drag against USD/JPY and USD/CHF…