Yesterday’s wave of fear on US credit concerns have subsided but USD/JPY, a traditional risk barometer, is still quite offered. Part of this could be a reaction to the 3% slide in the Nikkei last night and part to fears that proposed massive new government welfare spending will soak up ever-more Japanese domestic savings, leaving less to be invested in higher-yielding markets abroad.
US share markets are steady this morning, but showing no propensity to bounce after a 2.2% fall on Tuesday. ADP employment data is next up, at 12:15 GMT. 250,000 private-sector jobs are expected to be shed.
93.20/35 is support in the near-term while 91.75 is critical support in the medium-term. 92.75/80 is resistance near-term with more at 93.05.