The dollar is gaining solid ground across the board

It is all about the dollar as it is leading gains in the major currencies space, hitting fresh highs for the year against the likes of the euro, aussie and kiwi today.

The FOMC minutes yesterday saw the greenback dip a little initially but things quickly reversed and the dollar hasn't looked back since. The flight to safety amid the selling in equities so far today is also helping with dollar sentiment.

US futures are down 0.4% while 10-year Treasury yields are down 2.5 bps to 1.248%.

That said, I would argue that the broad dollar strength - even against the yen - owes much to bids as key technical levels break. In particular, that of EUR/USD:

EUR/USD D1 19-08

The pair is down to its lowest levels since November last year on a break below 1.1700 and there is little in the way stopping sellers from pushing towards the September and November lows at 1.1603-12 next (or more broadly speaking, the 1.1600 level).

That underscores the potential for the latest run in the dollar to extend, with dollar pairs in general feeling a renewed sense of vigour this week.

AUD/USD is trading under 0.7200 to its lowest levels in over nine months with downside risks continuing to mount, while NZD/USD is also tracking to its lowest levels for the year under the July support at 0.6880 with more room to roam below.