EUR/USD spiking higher, USD/JPY lower after US rating downgrade

The two other alternatives for global reserve currencies , EUR and JPY, are higher after the US was downgraded by Fitch:

• Fitch downgrades USA long-term credit rating to AA+ from AAA

I posted on the curious timing of this announcement here:

• Fitch placed USA on negative watch back in May, now has cut the US rating from triple A

By 'curious' I mean irresponsible of course. Regular market hours were closed in the US when Fitch dropped their bomb. There will be gaps to come when US bonds reopen. Meanwhiel FX is moving as it doesn't close. But liquidity is super thin. Its currently just going on to 7am in Tokyo and 6am in Hong Kong and Singapore. Which leaves New Zealand and Australia markets active. Super-thin liquidity.

The downgrade is seeing FX flows out of the USD, into EUR and JPY. There is money to be made, so no complaints:

more to come