The FX market is leading the way as risk trades fall back to the lowest levels of North American trading.

  • EUR/USD is back to the lowest levels since Asian trading after breaking through 1.2919. Stops seen below 1.2900.
  • AUD/USD is 12 pips away from a fresh 3-month low below 1.0118 but corporate bids are seen from parity to 1.0020.
  • Cable bids remain in the 1.6050/60 range.

The market is cutting risk ahead of the weekend due to the possibility (remote) of a political disaster in Greece or a banking disaster in Spain. A German state election could also spell trouble for Merkel.