For weeks we’ve been listening to pundits predicting a retest of the October 10 lows at 7880 in the Dow. Well here we are less than 400 points from those lows. Fears of a Grinch-like Christmas, the shifting TARP plan and fresh spasm in emerging markets like Russia and Brazil are all helping sends shivers sown investors backs once again.
JPY crosses continue to be hammered and commodity currencies are near their lows again despite earlier buying by the Reserve Bank of Australia. EUR/JPY heads into the close at 118.75, not far from the spike lows at 118.10 this morning. USD/JPY heads out at 94.95, less than half a yen above its earlier bottom. EUR/USD dips back below 1.2500 with the weight of the world, a slew of bad European bank debts and anticipation of further rate cuts all slicing into the price.