EUR/USD is now trading down by 0.4% to near 0.9900 and that is even before we get to the PMI data in Europe later today. This comes as the dollar is seen pulling higher with GBP/USD also down 0.4% to 1.1720 and AUD/USD down 0.3% to 0.6857 on the day. The extension comes as equities are slipping further with S&P 500 futures down 20 points, or 0.5%, currently.

The other key tailwind for the dollar (and bad for risk trades) is the fact that the Chinese yuan is deteriorating rather sharply after having seen USD/CNY break above 6.80 since the end of last week: