Crude is nearing $40, stocks are hovering about 1% lower and US yields are dipping further, all signs that the market remains in risk aversion mode.
Also helping the dollar was solid demand for the US 10-year note auction. The Treasury placed $16 billion in notes with $2.59 in bids for every $1 in notes on offer. This shows demand remains strong for US Treasuries despite a failed German bund auction yesterday. One factor in the weak dollar play this morning were concerns the US would have trouble selling debt today.
1.3665 is next support for EUR/USD with more down at 13635/40.
