Even as equities are finding a bit of a reprieve, currency traders are not really buying it. 10-year Treasury yields are down 2.7 bps on the day to 4.509% now and that is helping to give stocks a light breather. If anything, it could prove temporary and I reckon that is what is helping to keep traders on edge right now.
It seems like we're just waiting on the inevitable and once the selling hits bonds again, everything else will start acting up like it did yesterday. For now at least, major currencies are not doing much with the dollar keeping little changed across the board and narrower ranges are still prevailing:
EUR/USD is still hovering at its lowest levels since March near 1.0560 while USD/JPY continues to move in and around the 149.00 mark as intervention fears continue to keep a lid on price action.
Elsewhere, AUD/USD is down slightly by 0.2% to 0.6383 as sellers continue to make their way back to the lows for the year as seen here.
We're waiting on US traders to come in and have their say and I reckon only until then, will we have any firmer convictions in FX today.
