The S&P downgrade of Japan to AA- saw USD/JPY spike almost 100 pips higher during London trade and there has been consolidation since with the JPY crosses then playing catch up. It will be interesting to see how the Japanese market reacts and whether we see a big move out of JPY and into higher yielders like the AUD.
EUR/USD is closing right on a 61.8% retracement level at 1.3740, cable has treaded water since yesterday and AUD/USD is slightly weaker though still in full range-trading mode.
Good luck today and TGIF.
