The deleveraging switch has been turned on again as markets are in a sell everything mode, carrying that over from Friday last week.

The dollar is the main beneficiary in all of this, as it is seen advancing across the board and sitting firmly in control as we get things going here in European morning trade. Stocks are bleeding badly and the bond selloff is worsening both in Europe and the US.

EUR/USD is now marked down to fresh lows on the day of 1.0465, down 0.5%, as price looks towards retesting 1.0400 and the May lows around 1.0349-54 next:

The pair had been consolidating going into the ECB last week but the central bank's lack of address towards fragmentation risks has been a key trigger in the selloff in European assets since then. The euro is no exception in that regard.

Elsewhere, GBP/USD is down 0.6% as sellers also target the year's lows as pointed out earlier here. USD/JPY is flirting with the 135.00 level still but there is some counter-flows from the risk jitters in markets at play.

Elsewhere, USD/CAD is up another 0.4% to 1.2830 while AUD/USD is down 0.7% on the day and testing the 0.7000 handle once more:

The double-top around 0.7265-70 is a bit of a bad technical omen and the recent market sentiment only plays to that even more. A break below 0.7000 could see the selling intensify especially if the market mood today fails to improve significantly.