FX leans more defensively as risk mood looks heavy

It is shaping up to be another classic risk-off tilt in European trading today. Equities are down, with S&P 500 futures now lower by 0.3%, and 10-year Treasury yields are also down by 1 bps to 4.383% on the day. In turn, that is seeing the likes of the dollar, yen, and franc post a slight advance against the rest of the major currencies bloc.

USD/JPY itself is also marked down by 0.4% to 155.40 levels on a break below 156.00 earlier in the session:

The pair is now eyeing support at the 155.00 level next.

Meanwhile, USD/CHF is also down 0.1% to 0.8945 after the break below key support at 0.9000 yesterday. The dollar is under a bit of pressure there as highlighted earlier here.

But elsewhere, the dollar is recouping losses from yesterday. EUR/USD is down 0.2% to 1.0880 as the push above 1.0900 fails to take off. GBP/USD is also down 0.2% to 1.2780 on the day while AUD/USD is down 0.5% to 0.6655 currently, nearly erasing the entirety of its gains from the day before.

This article was written by Justin Low at www.forexlive.com.