FXstreet.com (Barcelona) - Risk aversion has returned to the markets triggered by U.S. home sales report which has produced a further decline in U.S. stock markets, and further losses for the Euro and Pound as the Dollar has performed as safe haven.

GBP/USD has reversed widely yesterday's rally dropping from 1.4600 hitting to fresh intra-week low at 1.4250. The UK GDP release stating that UK economy shrank at a 1.9% average level in 2008.

The Euro which had already dropped from 1.2875 to 1.2800 during the European session has extended losses to levels close to 1.2700 so far. USD/JPY has continued moving inside a range between 96.50 and 97.25.