Risk-off is kicking in as the US session progresses but US stimulus talks do not.
In the latest update, a call between the Dems has given the market renewed negative sentiment:
House Dem caucus call happening now and based on comments from Pelosi and committee chairs , per sources on call, a deal with Mnuchin is not sounding imminent— Erica Werner (@ericawerner) October 19, 2020
Moments after the updates, risk fell off a cliff with the S&P 500 extending losses to a low of 3433, and to trade down over 1.4%.
USD/JPY was supported by S&P slide in NY, that favours top haven USD.
Session high so far 105.50 vs the Wednesday & Thursday highs that were at 105.51/50.
The dollar is currently a slightly better haven than the yen and Treasury yields are firming on fiscal relief hopes, as well as the strong September Retail Sales.
Add to this news that Mike Pompeo has just tweeted the following:
'We are sanctioning mainland-China and Hong Kong entities and individuals for conduct related to the sanctioned proliferator the Islamic Republic of Iran Shipping Lines. Our warning is clear: If you do business with IRISL or its subsidiaries, you risk US sanctions.''
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.