FX Update: The dollar has outperformed while the yen has underperformed

FX Update: The dollar has outperformed while the yen has underperformed so far today, against a backdrop of rebounding European and U.S. equity index futures, and with Asian stock markets managing to lift out of early weakness. S&P 500 futures rallied by nearly 4% after the cash version of bellwether index crashed with a 11.98% loss yesterday on Wall Street, its worst fall since the infamous "Black Monday" of 1987. Pledges for massive fiscal intervention has followed the Fed's massive 100 bp rate cut and $750 B re-start of QE. President Trump tweeted that "The United States will be powerfully supporting those industries, like Airlines others, that are particularly affected by the Chinese virus," many other nations have announced various plans of interventions to deal with the economic impact of social distancing, draconian travel restrictions, and other measures being taking to curtail the spread of the virus. Oil prices are up over 4%, but remain down by a massive over 53% on the year-to-date (WTI bechmark). How successful the policy responses will be in the face of lockdowns and the like remains to be seen. It's seems clear now that there won't be a V-shaped recovery in markets and economic activity, similar to that seen in Asia during the 2003 SARS episode, as the coronavirus has proved much more adept at spreading exponentially than the SARS virus of 2003 did. Among the main currency pairings, USD-JPY rose by over 1% in posting a high at 107.17. The pair has remained shy of yesterday's high at 107.57. EUR-USD dropped back by around 0.5% in making a low at 1.1126, remaining well within the range seen over the last several days. AUD-USD lifted out of the 11-year lows seen yesterday.