The risk mood sours as Trump tests positive for the coronavirus

S&P 500 futures dropped by as much as ~1.5%, as more uncertainty grips the market in the US election race after president Trump has tested positive for the coronavirus.

E-minis 02-10

The risk aversion in the market is adding to flows in the dollar and Treasuries, with the greenback and yen advancing against other major currencies currently.

US 10-year yields have fallen by 2 bps to 0.657% currently and that is also weighing on USD/JPY, which has fallen from 105.50 levels to a low of 105.32.

USD/JPY H1 02-10

The pair is now testing the 200-hour MA (blue line) @ 105.39 and that will be a key near-term level to watch as we look towards European trading.

Elsewhere, EUR/USD has also fallen from 1.1715 to just under 1.1700 briefly and is testing key near-term technical levels as well:

EUR/USD H1 02-10