Nevertheless, the US caught a bid, coinciding with a rally in 10-year US Treasury yields which climbed from 2.997 to 3.095. The Long bond yield rose from 3.127 to 3.225.
EURUSD collapsed to 1.1820 ahead of the 10:00 am option expiry time and then bounced to 1.1870 by mid-day. Prices drifted lower in the afternoon. North Korea suspended high-level talks with South Korea after the US, and South Korea went ahead with military exercises.
Sterling was crushed. GBPUSD plunged to 1.3450 from 1.3550, tracking EURUSD moves and it also recovered, reaching 1.3528 by lunch hour.