Risk tones are keeping more defensive on the session but that hasn't quite helped the dollar much this time around - at least for now. The market is keeping with flows into the franc instead, reasons are two-fold as pointed out here.
But I can't help to shake off the feeling that if the equities slide is set to continue to US trading, it might only be a matter of time before the dollar arrests its drop today and turn things around.
EUR/USD is still up 0.3% to near 1.0500 while GBP/USD is just sitting below its highs for the day under 1.2400 in the past hour. AUD/USD has backed off from its earlier highs of 0.7020 to 0.6985 but is still up 0.5% currently.
I'm keeping my eyes on USD/JPY though, as the pair looks to potentially break down further below 128.00:
That could spark a heavier bid into the yen as rates also retreat alongside the selling in stocks. The 26 to 27 April lows near 127.00 will be the next key target before any extended downside leg.
S&P 500 futures are down 1.5%, 10-year Treasury yields down 5 bps to 2.833% as risk tones are souring on the session.
