A classic flight to safety has emerged as the theme to close out the week.
S&P 500 futures are down 0.8% and yields down 8-10 bps across the curve. The intensification of those moves have made for a mixed picture in the FX market. Commodity currencies continue to weaken while the US dollar loses ground against the yen and euro.
Yen crosses are in particular focus again today. Breakouts to long-term highs yesterday were met by a hot CPI report today that’s stoked fears about the end of yield curve control and led to broad yen buying.