EUR/USD extended its recent slide and struck a 3-session low after nearing the 21-DMA and the pair is close to re-entering the down trend from July's monthly peak.

U.S.
yields US2YT=RJR, US10YT=RJR recently corrected lower but remain near up-trend highs, helping to underpin the dollar.
Holding near those highs reinforces investors views the Fed will remain higher for longer.

The prospect of elevated U.S. yields helps to keep risk sentiment fragile.
Proxies for global growth, equities ESv1 and copper HGv1, are either sinking or are near down trend lows as investors seek out safer assets.

Concerns about China's economic growth, which the euro zone is dependent upon, are likely keeping EUR/USD bulls in check.

China's approval of new sovereign bond issues had only a short-lived positive impact on riskier assets and reports of Country Garden defaulting on dollar bonds fueled risk-off sentiment.

USD/CNH, which is proxy for overall risk sentiment, rallied above the 10-DMA as investors sought safety.

More event risks loom, such as U.S. Q3 GDP, weekly and continuing claims as well as September PCE -- the Fed's favored inflation gauge.
Data indicating robust economic and job growth along with rising inflation may sink EUR/USD as the Fed may lean hawkish next week.

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