USD/JPY skids as US yields fall | Forexlive

The mood has worsened in markets, led by tech stocks.

US 10-year yields are at the lows of the day, down 5.9 bps to 3.51%. In turn, the dollar is under broad pressure with USD/JPY giving back about two-thirds of today’s gain.

At times, risk aversion weights on cable but that’s not the case today as it hits a session high. Similarly, the euro is now up 45 pips to a high of 1.1033.

One of the catalysts for the change in sentiment was a soft Dallas Fed manufacturing survey but I suspect the bigger reason is angst ahead of this week’s tech earnings.

Overall, these still aren’t large moves and I’d classify them as noise but you can see how eager the market is to price in a recession.