The dollar's poor form is a troubling sign
The snapshot here doesn't really tell the full story of markets today. Despite the outperformance by the kiwi and aussie, commodity currencies are actually hit the hardest in the wake of the global equities rout we are seeing that started overnight.
This is the snapshot you need to be aware of ahead of European trading and that is the currency moves from yesterday and Asian trading today:
As mentioned, commodity currencies remain the big strugglers with the loonie hit the hardest as oil prices plunge alongside risk sentiment. The yen - although one of the weaker performers today - is still the leading major currency since yesterday.
And that is the snapshot that markets need to focus on rather than what is happening in just today's trading. Of note, the euro and pound are holding up very resiliently but the latter owes quite a bit to the upbeat Brexit rhetoric in recent times.
As for the former, it is very much tied to the dollar's inability to capitalise on the market situation. Despite the heavy risk off sentiment, the dollar is nowhere near the top of the currency rankings since overnight trading.
That points to a very worrying sign if you ask me. If something can't rally when it's supposed to, it points to trouble ahead.
