A wave of risk aversion just swept through the markets with heavy selling seen in riskier assets like emerging markets coinciding with the slide in EUR/USD to the lowest levels seen since early November. The greek downgrade combined with news that China is thightening the credit spigot is helping send investors to the exits, dragging traders along with them
Cable has withstood the onslaught surprisingly well. AS EUR/USD fell to new lows the pound held critical support in the 1.6250/60 area. Traders surmise it has some help from central banks, adding to reserves.
In EUR/USD, 1.4700 is next support, followed by 1.4630.
