The full wrap of the US session is here:
In summary for FX:
- 'safe haven' currencies gained as equities slumped, both yen and CHF are up against the USD. USD/JPY found its base for the session at 106.
- AUD and NZD lost ground, showing yet again how they are hostage to global 'risk' moves with domestic developments serving as a mere backdrop a long way down the list of factors moving the currencies for now
Now, about the euro ...
EUR managed to shake off its blues since earlier in the week when some at the ECB 'jawboned' it lower. EUR/USD has added around 60 points since the Asian lows on Thursday.
Lost amongst the 'we are concerned about the rise of the euro' noise out of the ECB was a comment from one council member reported in the Financial Times on Thursday that the Fed strategy review added to the pressure on the ECB to respond with its own, which it aims to finish next year.
- "The problem is that the Fed has already decided and so the market may interpret interest rates as being structurally higher in the euro area, which could lead to a further appreciation of the euro"
Aiming to finish next year means we can expect little from the ECB apart from the jawboning; if its going to be nothing more than words imminent from the Bank for so long that's a (partial, at least) catalyst for its better tone overnight:
