The Euro hit early 10 week lows in Asia today as news that the S&P and Moody's may downgrade Euro Zone banks with exposure to Eastern Europe debt as well as the suspect banks in Eastern Europe. As well, many traders looked to today's upcoming earnings releases from ING and Commerzbank to be the herald of more bad news, to the tune of about $5 billion Euros of losses. The EUR/USD hit an early low within the first hours of trading, touching 1.2558 as stops were triggered. The pair was bid from those levels with profit taking and talk of options below. EUR/USD tapped highs near 1.2612, but failed to break out from that area until early London, where I just saw the pair go 15 bid. EUR/JPY was in a range between 115.95 and 116.38 for the Asia session, but looked to break out early in London as well.

USD/JPY pretty much finished the day where it started, although trading lower for the majority of the day. The early high in USD/JPY was 92.50 and lows were recorded just under 92.10, with a wave of EUR/JPY buying pushing USD/JPY back to the 40 levels. Equities were beaten down in Asia, with Japan's Nikkei and Topix hovering close to 25 year lows.

GBP/USD traded sideways within 1.4268 and 1.4214 today ahead of Bank of England minutes at 9:30 GMT as well as CBI at 11:00 GMT. AUD/USD looked strong as RBA comments seemed to be a shade brighter than the usual gloom, pushing the pair from 0.6332 early lows to just near 0.6420 as of this writing. Tomorrow the BoJ will make a rate announcement which is a non event as they are assumed to keep rates steady at 0.10%.