The JPY, and to a slightly lesser extent the USD, have seen sharp rebounds overnight. The JPY and USD gains come with risk aversion returning against a backdrop of falling Asian stockmarkets and falling global commodities. The USD is also being bolstered by ongoing talk of foreign investors in U.S. stocks needing to buy dollars at the end of the month to maintain their currency hedge ratios. There is also a growing conviction that we’ll see the ECB and BOE cut rates next week (most probably by 50 bps) and this is helping to undermine the euro and cable. Overnight the BOJ cut rates by 20 bps, slightly less than had been generally expected, and this will have helped the JPY’s cause.