Risk aversion is still the game out there and with global stock markets falling heavily once again the high yielding currencies have come under further selling pressure. US equities fell to their lowest levels in three months as worries over the sub-prime 'fallout' continued to spook investors and also adding to the negative sentiment was a downgrade of Citigroup's stock to sell from neutral by Goldman Sachs who forecast further write-downs by the largest US bank because of mortgage losses. The FX market sees more than content to sit on the sidelines for now as it watches the equity market developments. The Euro itself is holding up well and is currently well in range of its record $1.4753 recorded earlier this month. With little in the way of economic releases this week and US Thanksgiving holiday on Thursday it's difficult to see this pattern of risk aversion changing over the next few days.
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