FXstreet.com (London) - The eurozone shoke today as Greece looks increasingly likely to become the next Dubia. Fitch, the credit ratings agency, pulled Greece's rating down to BBB+, sparking further worries over credit exposure.
While talk of Greece dominated the newswires, BoC held rates firm in Canada and echoed the same cautious sentiment asthe FED earlier this week, despite a string of positive macro data this week for the nation. Markets dulled after this, as risk aversion spread, prompting Dollar to charge across the board.
Yen strength also continued today, as risk aversion encouraged carry trade unwinds, and a return to safe haven currencies.
In early Asian trading EUR/USD traded softly, opening at 1.4691 and currently trading at 1.4693/96. A soft opening implies market reaction Eurozone credit fears may have priced in during US session as EUR tumbled 151 pips from day highs of 1.4844.
USD/JPY softened slightly as the Yen managed to outpace Dollar appreciation, as both pairs benefit from a move away from risky-assets. The pair traded tightly rangebound in US trading, between 88.57-88.19, on early Asian trading the pair has broken out on the upside currently trading at 88.62/63, as the Dollar surge continues.