And tonight it’s the turn of Risk Off. With all Asian equity markets lower and Europe likely to follow suit tonight early London is in and they are not in the mood for any risk currencies tonight. As a result we have seen new lows for the day in the usual suspects with more downward pressure likely throughout the remainder of the morning.
And EUR/JPY is leading the way once again. New low of 118.22 seen just now after failing to hold above 120.00 overnight. The overall range is 114.50/120.00 and it looks as though we will make further headway in that direction tonight.
EUR/GBP continues to hover above support at 0.8800 and needs to reclaim the 0.8930 level tonight or risks heading towards 0.8650.