As suspected there were lumpy stops just below 1.6430, sending the pairing quickly down to test next support level at 1.6400/05, which is holding. Cable is presently at 1.6420, up from session low 1.6406.

Risk aversion is picking up. Wherever I’ve looked this morning there is bad/worrying news.

Handelsblatt has an article carrying comments from Thomas Mirow, Head of the European Development Bank, highlighting the growing crisis in Eastern Europe.

Obviously we have our mate AEP highlighting issues in China.

You can add to that the WSJ highlighting the travails of CIT, who have delayed filing their quarterly report with the SEC as they continue to hammer out restructuring plan with bondholders. The WSJ also reports Atticus Capital have closed two back funds, handing back $3 bln to investors.