General risk aversion has picked up a bit. European stocks lower, CRB lower, US treasury yields lower etc etc

EUR/USD down at 1.4788 from early 1.4810 having been as low as 1.4751 (Reuters)/1.4755 (EBS.) Suffice it to say, we remain ensconsed in well-trodden 1.4750-1.4900 range.

Stops seen below 1.4750.

USD/JPY down at 80.80 from early 81.00, the move coming despite reports of BIS buying just below 81.00. Heightened risk aversion, lower US treasury yields weighing.

Buy orders seen layered 80.70 down to 80.50 now, sell stops below there.

Cable and sterling in general have had very poor morning. Cable down at 1.6490 from early 1.6620, EUR/GBP up at .8965 from early .8905. Rumours of a soft manufacturing PMI release weighed on sterling early. Stops were tripped in cable through 1.6580 accelerating the sell-off. The subsequent release of very soft data (see above) accelerated the process further.

Middle Eastern sovereign purchases around 1.6470 have lent some tenuous support. Talk of more sell stops through 1.6430 now.

In the EUR/GBP cross, talk of barrier option interest up at .9000. Would expect some fairly stout defence of said interest.

Aussie and canadian dollars have taken a hit this morning against the backdrop of increased risk aversion, lower commodities.

AUD/USD down at 1,.0865 from early 1.0915. USD/CAD up at .9525 from early .9460. Talk of buy stops through .9550 in USD/CAD and very large stops through .9625.