However, EU traders seem to be buying the dip, and stocks are moving off the daily lows, so are precious metals.
The EURUSD pair is trading below 1.22 and the USDJPY pair above 104, which could be important reversal thresholds. The dollar index moved above 90, and it is also breaking out from the medium-term falling wedge pattern, which is a bullish formation.
On the other hand, US yields are down today, with the 10-year yield dipping back to 1.1%. We will see if the recent breakout will hold as the US can't really afford higher yields.
Many EU countries are seeing a massive rise in the COVID cases, despite hard lockdowns. The new strain, which is said to be much more transmissible, is causing more and problems.
Cases are also increasing globally, with mainland China seeing its biggest daily increase in more than five months.
Later in the day, the ECB's governor Lagarde is due to speak, which might influence the EURUSD pair.