• USD leads, AUD lags on the day
  • European equities lower; S&P 500 futures down 2.3%
  • US 10-year yields up 9.6 bps to 3.25%
  • Gold down 0.8% to $1,855.53
  • WTI crude down 1.5% to $118.82
  • Bitcoin down 13% to $23,608

The market is carrying over the selloff from last week through to this week, as the rout spread across all asset classes with the dollar being the major beneficiary.

Equities held lower before the selling intensified in European morning trade and alongside another rout in Italian bonds, it is making for rather dour sentiment on the session. The implosion in cryptocurrencies since the weekend also didn’t really help the mood.

USD/JPY initially ran higher to 135.00 but has since fallen back a bit despite the surge in yields, owing to some counter-flows on risk aversion. The pair now keeps around 134.30-40 levels on the day.

Elsewhere, it has been one-way traffic for the dollar as it covers back the retracement in mid-May. That applies to the euro, which is now down 0.6% to 1.0455 on the day and the pound as well which has fallen past 1.2200 and is down over 1%.

Amid the sour risk mood, the aussie and kiwi are leading losses with the former falling past 0.7000 for the first time in four weeks and the latter slipping past 0.6300 – also the first time in four weeks.

It’s a bloodbath out there as everything is getting crushed, including commodities.

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