The JPY and USD have made some marginal gains during Asian trade, EUR/USD down at 1.4110 from a North American close Thursday around 1.4145, while EUR/JPY is down at 132.20 from around 132.70.
China has been sitting on top of EUR/USD, selling up in the 1.4140/50 area, and this has so far proven a barrier to extended upside.
Also general risk appetite has been slightly dented. Roubini has come out and refuted reports that he had improved his economic outlook.
The economist said “I have said on numerous occasions that the recession would last roughly 24 months. Therefore we are 19 months into that recession. If as I predicted the recession is over by year end it will have lasted 24 months with a recovery only beginning in 2010.”
The hotel bombings in Jakarta have also weighed.
For today, one of the main interests will be the earnings of a couple of U.S. banks, namely B of A and Citibank. B of A are expected to post Q-2 earnings of 28 cents, Citibank losses of 37 cents.