S&P 500 futures dropped by as much as 1.5%, as more uncertainty grips the market in the US election race after president Trump has tested positive for the coronavirus.
The risk aversion in the market is adding to flows in the dollar and Treasuries, with the greenback and yen advancing against other major currencies currently.
US 10-year yields have fallen by 2 bps to 0.657% currently and that is also weighing on USD/JPY, which has fallen from 105.50 levels to a low of 105.32.
The pair is now testing the 200-hour MA (blue line) @ 105.39 and that will be a key near-term level to watch as we look towards European trading.
Elsewhere, EUR/USD has also fallen from 1.1715 to just under 1.1700 briefly and is testing key near-term technical levels as well:
Credit: The post Dollar Extends Gains, Stocks Slide as Trump Tests Positive for COVID-19 first appeared in Forexlive on October 02, 2020