In recent bouts of US dollar selling, the moves have been steady and deliberate. When it’s started to make headway, the moves have been fast and relentless.
The market is looking to draw a line under risks assets and even though the US dollar is seen as a safe haven, the stock/bond markets and other USD-denominated assets are where fast money if focused at the moment.
The swift turnaround is clear in EUR/USD as it slides toward a test of the intraday lows. USD/JPY is also beginning to gather some momentum.
I suspect the final hour of US trading will be interesting. A break of the earlier low of 1.1884 will very likely mean a test of the multi-year low of 1.1865 and beyond.
