EUR/JPY was the big mover early in the session when risk aversion was the primary topic. A major technical support level was broken at 126.95 and the market gapped lower fast towards 126.50 but then surprisingly jumped 100 pips in less than 30 minutes, just before the Tokyo open. USD/JPY fell below 90.00 on this early push but has managed to stabilise nicely around the figure as the crosses found a base. Ranges: USD/JPY 89.79/90.50

EUR/USD fell sharply along with the cross but it has ground it’s way higher throughout the session and is sitting comfortably below the two-day high at 1.4140. Many traders are becoming less risk averse and more USD-bearish as they fully contemplate the possible effects of any new legistation. Range: 1.4068/1.4138.

The AUD/USD and AUD/JPY have both been quite volatile inside relatively tight ranges with the AUD now the lightening rod for any prospective changes to Chinese monetary policy. Ranges: .8984/.9053.

Cable has been fairly quiet following the lead of the EUR but the cross is slightly higher on the session. Range 1.6168/1.6220.

Markets: Nikkei -2.6%, HK -2.5%, Kospi -2.3%. Gold -$9 at $1095/oz.