Safety flows dominate the major currencies bloc on the day

The dollar is trading to the highs for the day against the other major currencies outside of the yen and franc. EUR/USD is now down 0.3% to 1.0868 while GBP/USD is down 0.4% to 1.2758 on the day. Commodity currencies are bearing the brunt of the pain with AUD/USD in particular now down 0.8% to 0.6635 and erasing all of its gains from yesterday.

The drop also sees sellers looking to seize back near-term control on a push below the key hourly moving averages. The confluence of the 100 (red line) and 200-hour (blue line) moving averages is at 0.6640-43.

Meanwhile, USD/CAD is also marked higher by 0.5% to 1.3695 on the day and NZD/USD down 0.4% to 0.6160 currently.

It’s an all out flight to safety in European morning trade thus far. Equities are keeping on the defensive with European indices down roughly 1% across the board. S&P 500 futures are down by 0.6% currently.

Going back to FX, USD/JPY is now down 0.7% to test the 155.00 level. The pair is down by more than 140 pips since Asia trading.

This article was written by Justin Low at www.forexlive.com.