The JPY and USD have managed to claw back some marginal ground during Asian trade, EUR/USD down at 1.4070 from a North American close Wednesday around 1.4110, while EUR/JPY is down at 132.20 from around 132.95.
CIT talks have failed, bankruptcy looms, possibly a filing as early as Friday. It would be the fourth largest bankruptcy in U.S. history. The news will have served to deflate risk appetite a little.
Elsewhere China’s Q-2 GDP came in at +7.9%, better than the expected 7.7%, and up from the Q-1 6.1%.
Asian sovereigns were notable sellers of EUR/USD up around 1.4100 and GBP/USD above 1.6400 yesterday, so it comes as no huge surprise to see both pairings below said levels this morning. To be honest the surging risk appetite did look a little overcooked.
Some European data today, but to be honest it’s distinctly second tier and likely to ellicit little or no response from the markets.
