Sentiment Turns Sour Amid Tech-Led Equity Rout

Risk-off flows have crept into G10 FX space on the back of a tech-led retreat in U.S. equity index futures. NASDAQ 100 e-minis have faltered in response to dim earnings reports from Meta and Spotify. These dynamics spilled over into FX price action, generating demand for safe havens.

• The yen leads gains among major currencies, with USD/JPY posting losses for the fifth day in a row, although yesterday's low remains intact. The U.S. dollar only marginally lags the yen, with the DXY operating in positive territory.
• Riskier currencies have faced some headwinds, with AUD landing at the bottom of the G10 pile. Its Antipodean cousin NZD has clawed back some losses, which has allowed AUD/NZD to pull back from a fresh seven-month high.
• Monetary policy decisions from the ECB & BoE headline today's economic docket, with a slew of global Services PMI readings as well as U.S. weekly jobless claims, factory orders & final durable goods orders also due.
• In addition to usual press conferences with ECB Pres Lagarde & BoE Gov Bailey, it may be worth following parliamentary testimonies from Fed nominees Raskin, Cook & Jefferson.