Yen pairs are still holding up rather well as E-minis continue their decline
USD/JPY continues to trade around the 100-hour MA (red line) despite the continued decline in US equity futures and the fact that Treasury yields have fallen. E-minis are now down by almost 1.0% on the day while 10-year yields are lower by 3.8 bps to 3.129%.
Despite that, yen pairs have barely budged and the dollar remains flat against the commodity currencies bloc as the session unravels. The euro and the pound are leading losses in the currencies space but that owes more to the fact of their own woes with the single currency facing a bleaker economic outlook and sterling getting caught in the crossfire of that alongside domestic political woes with Theresa May set to address Conservative lawmakers later on in the day.
It's looking very much the case that the currencies market will only respond to movement in the US cash equity market and we'll have to wait on that before seeing further moves in the other major currencies today.
