US custody banks, the banks that do the trade clearing for mutual funds, pension plans and other institutional investors have been hammering EUR/USD this afternoon, knocking it down about a cent in the last hour. The volumes are not overwhelming but liquidity is lousy in the FX market as it is in all the other markets today.
USD/JPY finally cracked after sitting tight at 99.60 for quite some time. It slipped back into the 99-teens before steadying.
Reuters reports a G7 official said the G7 would not guarantee interbank lending as some had hoped. Stocks are down more than 500 points
