The JPY has firmed marginally in overnight Asian trade as recently improved risk appetite takes a slight knock. USD/JPY is down at 97.25 from a North American close Wednesday around 97.65, while EUR/JPY is down at 129.20 from around 129.60.
The very slight souring of sentiment has come primarily from two developments. Firstly, the WSJ reports that Chrysler talks have broken down and bankruptcy looks imminent. Administration officials, who have been making contingency plans for this eventuality, say all the pieces are in place to get the auto maker through bankruptcy court quickly, maybe in a matter of weeks.
Elsewhere in Mexico, President Calderon has asked people to stay home during a partial economy shutdown from May 1 through May 5.
While risk sentiment has taken a slight knock, it still looks fairly healthy overall. Asian stocks made decent gains overnight.
