Major currencies somewhat subdued in trading so far today
EUR/USD is keeping in a 11 pips range and still near the year's lows, holding below 1.1700 with eyes still on the key support region at 1.1664-66. Meanwhile, USD/JPY did briefly touch its highest level since March last year at 111.68 but is still seen contesting key daily resistance at 111.64-66 with price keeping at 111.50 at the moment.
This comes as Treasury yields are not showing much movement on the day but just be wary that the technical picture continues to support a move higher in yields:
The aussie is leading gains in FX by a slim margin with AUD/USD up 0.2% to 0.7250 but the range for the pair today is still seen at 26 pips so that's not a lot.
Equities are looking to bounce back after the slump yesterday, after having seen the S&P 500 fall by 2% (worst day since May) and Nasdaq down by nearly 3% (worst day since March). US futures are up roughly 0.5% at the moment.
As such, a mild bounce in equities could see risk currencies find some light reprieve today but just be wary of any sudden moves in the bond market once again. That could inflict more pain on risk sentiment during the course of the week.
Elsewhere, energy prices are cooling off a bit and retreating slightly following the highs seen yesterday. Oil is down 1.4% to $74.22 after nearing its July high and natural gas has also come off the boil a little as price is pushed back down below $6 for now:
