FOREX: Significant USD Strength Extending, EMFX Under Particular Pressure

* The massive move higher for US yields is extending, with two-year yields now up just shy of 20bps on the session and the five-year yield reaching 5% for the first time since 2007. The combination of fixed income dynamics and a weaker equity backdrop continue to propel the US dollar higher today, with the Bloomberg DXY extending gains to 0.7% on the session. * In terms of the G10 majors, EURUSD is sinking further below 1.14, while USDJPY has made a convincing break above both the post-BOJ highs and the 50-day EMA just above the 158 handle. * Higher beta currencies continue to bear the greater brunt of the cross-asset moves though, with the likes of AUD and NZD remaining the poorest performers, and the Swedish krona now down by over 1%. Highlighting the vulnerability for risk on Wednesday, the emerging market FX complex continues to take a pounding, with the EM FX indices approaching 1% decline today. * While the likes of COP, CLP and HUF have had sizeable adjustments, within the more liquid currencies, both MXN and ZAR are now operating with 1.5% losses on the day. USDMXN continues to standout, where a close at current levels would represent the largest nominal appreciation since