Risk off today, European stocks sharply lower, oil sharply lower, cost of sovereign debt insurance higher etc etc. Worries about euro zone bank funding, worrries about euro zone debt, worries about Chinese growth. Same as it ever was.

EUR/USD down at 1.2190 from early 1.2260. Stops through 1.2250 were tripped accelerating the sell-off. There was talk of a 1.2200/1.2400 dnt in place with expiry this Friday, but despite talk of sovereign bids around 1.2220 it never really stood much of a chance.

We’ve been as low as 1.2178 so far. Talk of BIS and Middle Eastern sovereign buying around the lows has lent some support. Talk of Asian buy orders lined up down at 1.2140/60.

Cable lower on the day against the backdrop of increased risk aversion, but continued sell-off of the EUR/GBP cross has helped limit losses. Pairing is down at 1.5055 from early 1.5090, while EUR/GBP is down around ..8097 from early .8125.

Talk of stops now in cable through 1.5010 and larger through 1.4970. Stops seen though .8090 in the cross.

USD/JPY down at 88.70 from early 88.90, EUR/JPY down at 108.15 from 109.05, yen beneficiary as usual from heightened risk aversion. Interesting to have heard recent reports (last week) of major Japanese bank recommending clients buy 1-year 88/98 dnt given lack of recent price action.

Above would maybe suggest 88.00 will be defended with some gusto if we get down there.

EUR/CHF has continued it’s sojourn lower, presently at 1.3260 from early 1.3330. Talk of buy orders lined up down at 1.3235/50 which have so far lent tenuous support.