The forex markets were for the most part of the day orderly, except of course for the brief round of risk appetite that drove the US Dollar and Yen lower. With markets seemingly giddy over the strong showing on Wall Street, traders bought into riskier assets, pushing the EUR/USD briefly over 1.4070 and the EUR/JPY to 135.50. However, as the Chinese markets looked to come online for the day, traders took precautionary steps and bought back into the safe haven currencies in order to protect themselves against any further declines in the Shanghai Market. Although the Shanghai stock index initially hovered near unchanged, it eventually dropped over 2%, sending the US Dollar and the Japanese Yen back to unchanged or better on the day. The Chinese equity market has been a prime mover in currencies as of late. The EUR/USD highs over 1.4170 mentioned earlier were erased to levels near 1.4125, and the EUR/JPY eventually dropped below 133.50. On a grander scale, GBP/JPY shed almost 150 pips from its session high of 157.50, helping drag the GBP/USD from 1.6590ish to near 1.6510. Comments out of the Conservative party in London stating that the UK could risk defaulting on debt due to its record borrowing did not help matters for the Pound. BOE Minutes will be release later in the day to possibly add to the volatile pair. USD/JPY failed to reach the recent comfort zone of 95.00 by about 10 pips, and subsequently dropped below the 94.50 levels late in the day. It seems to be a safe assumption that if the Shanghai market continues south, it will push more buyers into the US Dollar and the Yen.