Risk trades in the FX market took a bashing after Mr Bernanke’s downbeat assessments of the US economy but the Asian session has failed to add any new momentum in any direction.

USD/JPY opened at 86.85 and gradually slipped lower as dealers anticipated falls in regional stockmarkets. Stops below 86.50 were eventually triggered but with decent bids seen between 86.30/45 and with BoJ/Kampo along with other Asian Sovereign names believed to be buying closer to 86.00, the market did not have the appetite to take them on. Ranges: 86.45/98, EUR/JPY 110.37/111.06

EUR/USD has been quite lacklustre despite the market’s attempts to get EUR/JPY moving. The 1.27 handle is seemingly devoid of orders and this left dealers with nothing to aim for. All eyes are on the European stress tests which should be released in about 26 hours time. Ranges: EUR/USD 1.2739/79, EUR/CHF 1.3374/1.3416

Nobody has wanted to play in the cable after the mad moves in early London yesterday. Ranges: EUR/GBP .8397/.8418, cable 1.5166/90

The AUD has been the most volatile of the majors with the AUD/JPY still the main risk trade in Asia. Ranges: AUD/USD .8739/82, AUD/JPY 75.51/76.45.

Markets: Nikkei -0.9%, Kospi -0.3%, All Ords -0.4%, HK -0.2%. Gold -$6 at $1186/oz. Oil $76.50/bbl.