The classic flight to risk aversion came back to the fore in NY trading and the USD was once again the main beneficiary in the FX space. US equities got pummeled about -3.5% and major indices closed at levels not seen since 1997 to boot! US Treasuries rallied modestly with the 10-year falling about -3bps to 2.76%. Gold was relatively flat and trading just above the $990 level at the close. Oil meanwhile got crushed nearly -5% and was sitting just above $38/bbl as concerns about global demand continued to weigh on the commodity.

The price action in risk was a recipe for USD strength, with the buck solidifying its safe haven status once again. EUR/USD sank more than -90 pips and was just below the 1.27 level as we close out. The next crucial support zone is by 1.2680 where the 100hr SMA lurks. Need back above 1.28 to shift the focus higher in the short term. USD/JPY shed a modest -10 points and was trading near 94.50/60 at the NY close. The pair found a good barrier by 95 and failure to close above here suggests we could be poised for some short-term weakness. That said, the bias is higher while above 93.80/50 here. This price action left EUR/JPY about -100 pips in the red and near the 120 support area as we head into Asia trading.

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