The JPY and USD have firmed in overnight trade as risk aversion returns. EUR/USD is down at 1.3270 from a North American close Tuesday up around 1.3320, while EUR/JPY is down at 130.40 from around 131.85.
Risk sentiment has been dented by reports regulators have determined Bank of America needs about $34 bln in new capital, which is much higher than had been generally expected.
There is also evident caution ahead of tomorrows ECB meet, the outcome of which remains very uncertain.
Elsewhere Kenneth Rogoff, former chief economist at the International Monetary, did little to lighten the mood. Mr Rogoff feels the U.S will require further stimulus to emerge from a long L-shaped recession.
