Haven Demand Brings EUR/USD Close To Parity

Participants rush to safety as U.S. e-mini futures sink into negative territory, resulting in the outperformance of JPY, USD and CHF. Regional headline flow has offered little in the way of fresh insights, but has also failed to assuage lingering familiar fears.

• The U.S. dollar index (BBDXY) creeps to new cyclical highs, even as U.S. Tsy yields have richened across the curve in cash Tokyo trade.
• Greenback strength drags EUR close to parity. When this is being typed, EUR/USD has shed 28 pips to last trade at $1.0012.
• The yen is the only G10 currency to beat the greenback, albeit USD/JPY remains quite far from retracing yesterday's gains.
• The Aussie dollar comes under pressure on the back of risk aversion, with AUD/USD testing overnight lows.
• The upswing in USD/CNH through CNH6.74 may have been facilitated by a weaker than expected PBOC fix. The People's Bank set the mid-point of permitted USD/CNY trading band 18 pips above the forecast level. Spot USD/CNH trades ~200 pips better off, printing new one-month highs.