The dollar and yen are sitting well firmer across the board as  equities  get shoved lower and bonds are bid. Commodities are mostly lower as well with cryptocurrencies also in turmoil. It’s shaping up to be a classic risk-off session in Europe today.

EUR/USD is now down over 0.5% to 1.0445 to its lowest January 2017, with eyes set on the 1.0400 level:

Meanwhile, the antipodeans are bearing the brunt of the risk-off mood in markets with AUD/USD down 0.8% to 0.6880 levels as pointed out here. GBP/USD also made fresh lows since May 2020 and is down 0.5% to 1.2190 at the moment.

The dollar is bid across the board but only losing out to the Japanese yen, with USD/JPY briefly dipping below 129.00. The pair is still down 0.7% on the day at around 129.10 currently. That comes as bond yields continue to fall, down a fourth straight day for the first time this year.

In short, the dollar rally looks to stretch further with new horizons being focused upon.

EUR/USD is setting course towards the December 2016 and January 2017 lows around 1.0340-52, with 1.0400 the key level to watch on the weekly chart. GBP/USD is stumbling its way towards 1.2000 and AUD/USD is solidifying a break below 0.7000 to its 50.0 Fib retracement level of the pandemic swing higher @ 0.6757.

It’s tough to fight the recent momentum and even more so when the technicals are continuing to favour the greenback for now.

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