EUR/USD after holding rather steady this morning has succumbed to selling pressure and is playing catch-up now with GBP/USD and AUD/USD on the downside. Equity losses remain in the “ugly” category – Dax -2.2%, FTSE -2.5%. US futures are also hard down, Dow -2.2%, S&P -2.7%.
Correlations are generally working again with risk trades all heading in the same direction – down.
There is talk of a sovereign bid at 1.2230/40 ( thanks Bagginths) but I would suggest nothing is safe in the current environment.