EUR/JPY goes into the weekend on session lows, weighed down by a late dip in US equities The major index closed down a bit over 2%. US employment data was poor but no worse than expected as non-farm payrolls fell 524,000 and the jobless rate rose to 72%. European woes increased today with both Ireland and Greece flagged for credit downgrades by S&P. US 10-year yields drifted down to 2.39% from near 2.50% earlier in the week. Concerns over Chinese bond buying were allayed by reports of Chinese selling in EUR/USD after the data (though they were also spotted covering shorts at lower levels).
Risk aversion rules as a long, cruel recession continues to unfold. EUR/JPY fell to 121.20 while USD/JPY fell as low as 90.16. barrier options at 90.00 were protected today. Cable fell along with eur/usd with GBP/JPY sales prevalent amid risk reduction. EUR/USD reached 1.3416 before steadying.