EUR/USD extended London’s losses, triggering stops after working through strong bids in the 1.3530/40 area. Comments from the Greek PM that Greece is close to be unable to borrow and an unexpected Indian rate hike helped fuel a bout of risk aversion.

While China has been hinting at rate hikes, India, the I in BRIC, has hiked twice this year. Gold tumbled toward $1100 after the move while oil fell $2 intraday before closing down 1.60 at $80.60.

EUR/USD fell as low as 1.3503 before rebounding into the low 1.3540s in very quiet afternoon trade.

Cable was weighed down by comments from the BOE’s Sentance that a double-dip recession is a possibility as well as a threatened British Airways strike tonight. It fell to 1.4990 before edging up to close at 1.5018.

USD/CAD fell to 18 month lows after CPI rose above the BOC’s 2.0% target, to 2.1% and retail sales exceeded expectations. The commodities slide sparked short-covering later in the day. We rebounded from 1.0065 lows to end at 1.0165.

Have a great weekend all!