Risk off today, European stocks down (FTSE 100 around 1%; DAX 30 off around 0.8%, CAC 40 off around 1.3%) with oil off around one and three quarter bucks.

Euro hit particularly hard, extending losses seen overnight in Asia. Worries surrounding European banks (see WSJ article above) and PIIGS back on the front burner.

EUR/USD down at 1.2740 from early 1.2805, the move accelerating as stops through 1.2780 and 1.2755 tripped. EUR/JPY down at 106.85 from early 107.65.

USD/JPY down at 83.85 from early 84.05. Comments made by BOJ Governor Shirakawa (see above), increased risk aversion and lower US yields all weighed on the pairing.

Cable at 1.5365 fractionally easier on the day. Sell-off in EUR/GBP cross will have helped limit cable losses. Cross down at .8292 from early .8325.