The back and forth continues to play out as the relief in markets yesterday appears to be short-lived. The dollar is jumping higher on the day now as stocks are tumbling lower while Treasury yields are picking up again. S&P 500 futures are now down 1.4% while 10-year Treasury yields are up 6.5 bps to 3.356% on the day.
That is seeing the dollar flex its muscles again with EUR/USD slipping just below 1.0400 to 1.0390 levels again. The lows around 1.0348-54 will be a key support region to watch but a daily break below 1.0400 is likely to accelerate downside pressures for the pair and bring up more parity talk.
Meanwhile, GBP/USD is down over 100 pips in a swing back the other direction after yesterday's climb towards 1.2200 is turning back the other way. The jump yesterday fell short in testing its 100-hour moving average at 1.2212 at the time before sellers put their foot back on the gas pedal.
As risk is a little on edge again, AUD/USD is down 0.6% to 0.6960 and is threatening a fall back below its 100-hour moving average of 0.6973 at the moment. NZD/USD is also down 0.7% to 0.6240 on the day as the highs earlier fail to really clear its own 100-hour moving average just below 0.6300.
