The risk aversion today deepens as recession fears grow in Europe

<p>Equities are falling to fresh lows on the day as bonds are bid across the board. It's a typical risk-off day at the moment as the rather disappointing French and German PMI readings just adds to the misery for risk sentiment on the week.</p><p>S&amp;P 500 futures are down 0.5% as European indices are holding losses around 0.6% to 0.9% currently. Meanwhile, 10-year Treasury yields are falling further to nearly 6 bps down at 3.742% at the moment.</p><p>In FX, the euro is the big loser after the data is out with EUR/USD falling from 1.0920 levels to a low of 1.0855 as sellers recapture near-term control of the pair as mentioned <a href="https://www.forexlive.com/news/euro-falls-as-french-economy-shows-disappointing-end-to-q2-performance-20230623/" target="_blank" rel="follow">here</a>. This puts the pressure back on a move towards the 100-day moving average (red line) at 1.0808 again after failure to get above 1.1000 this week:</p><p>Meanwhile, the dollar and yen are the two main beneficiaries at the moment. The former is holding gains from earlier as highlighted <a href="https://www.forexlive.com/news/dollar-holds-firmer-towards-the-final-stretch-of-the-week-20230623/" target="_blank" rel="follow">here</a> while USD/JPY is now down 0.2% to 142.85 from around 143.00 earlier in the day.</p>

This article was written by Justin Low at www.forexlive.com.