It is tough to make sense of market flows in times like these. The dollar slumped heavily yesterday despite a more risk-off tone as equities sold off hard, with Treasury yields turning an early advance in Europe into a big tumble in US trading.

There are a lot of moving parts and it isn't easy to get your head around everything but Adam has some good points on that in this post here. Nonetheless, there are some straightforward messages that we can take away from markets this week.

For one, the Swiss franc looks poised for a further appreciation as the SNB essentially removes the weight off the spring. Given a more sour global economic outlook and the fact that markets have not priced in such a policy pivot, there is room to strengthen for the franc unless the SNB decides to step in.

The other it seems to be that the yen is still headed in the opposite direction as long as the BOJ continues to throw the kitchen sink at trying to maintain yield curve control. The drop in bond yields is a notable factor weighing on USD/JPY since the FOMC meeting but all else being equal, it is tough to bet on the yen to sustain any gains.

Then, we also have the ECB trying to shore up confidence by saying that they are here to "normalise" the spreads, not close them. It's all semantics at the end of the day but actions will speak louder than words. As such, European bond markets will remain a key focus for the euro in the weeks/months ahead.

As for equities, it is tough to find any real reprieve considering the technicals and the more dire market outlook. There might be scope for sharp bounces as bear market rallies can be rather violent but the bigger picture remains rather challenging for stocks at the moment.

I would argue that those are the "simpler" themes in markets at the moment but in a time when central banks are acting rather bizarrely, there isn't really such a thing as "simple".

0900 GMT - Eurozone May final CPI figures

That's all for the session ahead. I wish you the best of days to come and good luck with your trading! Stay safe out there.