WikiFX report: US dollar mounts as China, Russia add strength to Fed-linked risk-aversion

Increased investor risk aversion, which could increase vulnerability for banking systems with substantial net external debt. Risk-aversion runs at full steam during early Monday as weekend headlines add Russia and China to the prevailing Fed-impressed flight to safety.

The rush for risk-safety propelled the US dollar towards a fresh 20-year high, which in turn drowned prices of commodities and Antipodeans.

Gold prints the biggest daily loss in a week while Brent oil snaps a three-day uptrend. NZDUSD loses heavily among the G10 currency pairs while equities in the Asia-Pacific region, as well as during the early European session, see the red.

When it comes to Cryptocurrencies also remain unsaved from the overall pessimism and broke the short-term key supports.

Following is the list of major assets latest performances:

• Brent oil snaps a three-day uptrend to drop back towards $111.00, down 1.8%.

• Gold extends the previous weeks losses around $1,870.

• USD Index stays firmer above 104.00 after refreshing two-decade high.

• FTSE 100 drops 0.64% but DAX remains indecisive even as EUROSTOXX50 print 0.70% intraday losses.

• Dow Jones and S&P 500 declined 0.30% and 0.57% respectively while Nasdaq shed over 1.40% on Friday.

• BTCUSD and ETHUSD both remain pressured around the lowest levels since January and February respectively, close to $33,500 and $2,450 in that order by the press time.