The obvious answer is none of them. EUR/USD fell heavily last night on European Sovereign debt worries but USD/JPY fell heavily as well after S&P put a negative outlook on the US credit rating. On the other hand, the market will have serious concerns about ploughing back into the JPY again after all their recent problems, which are by no means resolved. Precious metals again rose sharply as the market looked for something, anything, to buy.
In this environment, we can expect the CHF and the AUD to remain in demand and personally I would not be surprised to see the GBP out-performing the big three. The money’s got to go somewhere. As to the relationships between EUR/USD/JPY, they should be volatile at least.
