USD/JPY is takin’ a whoopin’ but EUR/USD and cable are holding up for some odd reason as stocks sink to session lows. Global recession fears are the focus today as emerging markets get hammered and prompt more deleveraging across the board. Brazil is in freefall, down 10% at the moment. The Dow is down 5%, for comparisons sake.
USD/JPY trades at 97.80 while EUR/JPY us at 125.70, a five-year low. Expect a world of barrier options at 125.00, a very tempting target in a market looking for easy profits. EUR/USD trades quietly at 1.2850 and Cable at 1.6320.
