Dollar extends drop as China doesn’t blink first | Forexlive

EUR/USD briefly clipped the 1.1400 mark while USD/JPY is now looking to secure a firmer break under 143.00 in trading today. The latter is now trading to its lowest levels since September last year:

From a technical perspective, the 140.00 mark is the next target on the charts. But at this point, headline risks are paramount.

Besides that, USD/CHF continues to eat into the lows set all the way back in 2015 when the SNB did the rug pull on the EUR/CHF floor. Man, has it been 10 years already? The pair is now down another 1.1% to 0.8140 currently.

Elsewhere, US futures are dribbling lower with S&P 500 futures down 0.3%. 30-year Treasury yields are at 4.875% so the good news at least is that the pressure on the bond market isn’t tipping it over towards 5% just yet. But it might just be a matter of time if there is no help from Trump or the Fed before the weekend.

Right now, China shows that it isn’t going to be the first one to blink in this game of chicken.