Equities are producing a rather solid rebound on the session now with S&P 500 futures climbing by ~27 points to 3,790, or up 0.7%, on the day. That compares with earlier where it fell by ~28 points to 3,735, or down by 0.7%, after the dismal PMI readings from France and Germany. However, the optimistic turnaround is not broad-based as mentioned here.

In FX, the dollar and yen are still holding on to gains mostly. EUR/USD is down 0.5% to 1.0505 with the low earlier touching 1.0485 and testing the 200-hour moving average:

Buyers are holding on to that for now with large expiries at 1.0500 perhaps also a factor on the day.

Meanwhile, GBP/USD is down 0.5% to 1.2205 but the low earlier came in near 1.2270 and the pair caught a bounce of some near-term support highlighted here.

Elsewhere, USD/CAD is holding a little higher at 1.2960 – up just 0.1% on the day and AUD/USD is down 0.5% to 0.6890 with sellers not letting up just yet despite the turn in the risk mood.

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