Markets are squirmy as risk sours since overnight trading
The yen is benefiting the most from the negative risk tones in markets today as equities are slipping across the board while Treasury yields are also weighed lower as the day begins. US 10-year yields sit 1.8 bps lower now, down to 2.895% - a far cry from the 3% barrier.
Meanwhile, the dollar is holding steady on the day so far but isn't really seeing massive bids aside from decent moves against commodity currencies. The focus for the dollar will remain on the yield curve inversion and Treasury yields but I reckon the dollar will steady a bit ahead of tomorrow's non-farm payrolls release.
No surprises that commodity currencies are the laggard today as risk sentiment sours. The aussie is the biggest loser on the back of the sour mood and a miss on trade balance data earlier doesn't help either. The kiwi is also weighed lower as both currencies fail to see any reprieve as the PBOC weakened the yuan at the fix today.
Lastly, the loonie is continuing its losses following overnight trading where the Bank of Canada erred to the dovish side. Oil prices are also a little lower as expectations remain low ahead of the OPEC+ meeting later and that isn't helping the currency on the day so far.
