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The yen is notably the weakest performing major currency currently
From the look of things, you’d reckon markets are trading risk-on right now, no? But that isn’t obvious when you look at the equities space. The Nikkei is trading 0.2% lower while the Hang Seng and Shanghai Composite are down 0.6% and 0.9% at the break.
But the thing to note is that all indices are off their lows for the day. Equities aside, flows out of bonds are more notable as 10-year Treasury yields are higher now by 1.5 bps to 2.877%. US equity futures are also holding up well with E-minis trading 0.3% higher:
Note the spike higher in the chart, which coincided with the move lower in the dollar and the yen as well. Adding further woes for the dollar is the fact that the Chinese yuan is also strengthening against the greenback despite the PBOC moving to weaken the yuan at the fix today:
The offshore yuan is back to trade under the 6.90 level and is higher against the dollar by 0.7% currently.
This article was originally published by Forexlive.com. Read the original article here.