USD/JPY opens slightly lower in its range in New York (90.40) this morning after a 2.4% drop in the Nikkei. Shares of Japanese automakers led the way lower as sales slump around the globe and the strong yen creates a strong headwind. Amid these headwinds, the government passed a record-sized budget for next year to try and give the economy a bit of a boost.
EUR/USD edged up in quiet trade, helped in part by the headlines that the US continues to auction short-term debt at 0% yield.
Oil trades at $37.00, a harbinger of a slow global economy ahead. With the eurozone quite dependant on exports it is hard to see the single currency overcoming the 1.47/1.49 region that has capped rallies durinh the fourth quarter of this year, ZIRP or no ZIRP in the US.
