Risk sentiment is on the softer side so far today
The risk mood stays on the more cautious side as we approach North American trading, with traders looking towards US retail sales for further direction in trading today. The shift in risk mood came about around the time when Chinese data was released and it wasn't pretty to say the least with the negative highlight being industrial activity growing at its slowest annual pace since February 2002.
US Treasury yields are also languishing near the lows for the day with 10-year yields down by 3.5 bps to 2.06%. This has helped to keep the yen slightly bid with USD/JPY holding near lows around 108.20 now.
All that being said, it's over to US data now to confirm things and the tricky part here is if we get readings within expectations. That'll leave markets with more to decide over the next few days ahead of the FOMC meeting next week.
