The markets are as gray as the weather in the Northeast today. The Dow is down 4%, commodities are soft and EUR/JPY trades just above session lows. Credit markets have eased up in recent days but risk aversion is still running high. A one-month T-bill yields a robust 10 basis points at the moment. The dollar has tended to do well and EUR/JPY badly in risk-averse environments. No reason to see that change no, short of intervention to sell JPY by the BOJ.
EUR/US trades at 1.2725. Session lows sit at 1.2712. EUR/JPY is at 124.50, above 124.25 lows.
