FXstreet.com (London) - Dollar trade was to the downside this session against the majors, particularly versus Yen, as JPY strengthened also this session. General theme has moved toward risk aversion, potentially on profit-taking.
Euro has traded marginally down as doubt over Greece ability to narrow its fiscal deficit grows, and players now concerned over speed of recovery. Market has reacted strongly to the US presidents proposed banking reforms, and their potential effect on market liquidity.
The broad picture for the Greenback against its major partners as we head to the Asian close is as follows: EUR/USD 1.4127/29 (+0.31%), Swissy 1.0408/12 (-0.18%), Cable 1.6211/16 (+0.11%), USD/JPY 90.00/04 (-0.46%).
Nikkei gapped early and continued to extend losses this session currently trading down 260 basis points at 10582 points. Resources, financials and exporting heavyweights all suffered.
London will open likely to downside following Nikkei bearish outlook, with market players likely trading out and shorting ahead of the weekend as uncertain conditions are considered more carefully.