The move below 1.25 in EUR/USD was short-lived and we are now trading back around 1.2540. The doom and gloom merchants were out in force in the UK press this morning but we have heard it all before. The European session has been a quiet one so far in stark contrast to the Asian session where liquidity is a huge problem.
Asian regional central banks were intervening all day in order to protect their local currencies. Talk of around half a yard each at the central banks of Taiwan, Philippines and Indonesia. Whilst S. Korea had a holiday it did not stop KRW NDFs trading another 2% higher. Asia has got the jitters big time. Another 4% drop on Wall Street may send them over the edge.