As Jamie has pointed out below, the future for many European economies is looking decidedly weak and the word contagion is spreading fear into anyone who’s remotely bullish on the EU. The market has quickly shifted its focus away from the USD and it’s woes and onto the EUR- once again we’re in a straight ugly contest.
The AUD has held up reasonably well overnight for the simple reason that, when compared with all other currencies, it looks very appealing. Provided the market isn’t sitting overly long and prone to a risk-aversion cleanout, the AUD should find plenty of support on dips.
USD/JPY has managed another minor milestone with the re-taking of 83.00 and the short-term trend remains mildly bullish. Cable has eased somewhat on heavy profit-taking from the Russian plus some bigger Middle-Eastern accounts and it may well threaten the rumoured big stops below 1.5950 in coming sessions before the recent uptrend takes hold again.
Good luck today.