The euro isn't the only thing that is looking heavy at the moment as bond yields are dragged lower across the board after the dismal PMI readings from France and Germany. Recession alarm bells are ringing and that is not providing much comfort to risk trades at the moment.
10-year German bund yields have fallen by 13 bps to 1.09% and is threatening to fall to its lowest levels since late May as seen above. Elsewhere, 10-year Treasury yields have now dropped by nearly 7 bps to 2.84% and the overall mood could see the Japanese yen hold firmer before the weekend even if there isn't much reaction in the currency for now.
If equities start to fall further and a more risk-off mood develops, that could quickly see bigger moves in FX later today.
