EURUSD: The euro held its gains above the 1.1300 mark as the dollar eased against most of its peers. The euro remained buoyant in the European session and rose to 1.1365 from 1.1280 ( 85 pips) not on fundamentals, but more on cross exchange used to buy other investment vehicles facing the uncertainty of the stock market rout and the continuing decline of commodity prices. The WTI Oil has fallen below $27/barrel. The German Dax is down -2.55% as of 11:30 GMT. The US dollar and U.S. future equities fell on the Fed Chairman Janet Yellen's bearish comment yesterday, "The Fed may delay, not abandon the planned interest rate increases in response to the recent turmoil in the financial markets."
USDJPY: The Japanese Yen surge against most of the major currencies on safe haven buying demand amid the escalating tension between North Korea and South Korea. while global stocks and the price of oil continue to fall. The USDJPY rate has fallen steadily from 115.00 yesterday in NY to 111.00 in Europe. (-400 pips on the intraday chart). South Korea applied more sanctions against North Korea's recent nuclear test by pulling out from an industrial complex jointly run with North Korea. Despite the national holiday in Japan, investors flocked to buy the yen. The Chinese participants returned after a long New Year holiday. Hang Seng fell -3.85%
GBPUSD: The pound fell in Europe from 1.4545 to 1.4380 (-165 pips) as a result of risk aversion, but mainly on the cross selling price action of GBPJPY. Traders showed much safe haven buying interest for the Japanese Yen, while the stocks fell once again in Europe. GBPJPY fell from 167.00 to 160.00 (-700 pips) on the intraday chart amid a thin market in the absence of Japanese participants away on holiday. FTSE fell 2.4% as of 11:30 GMT. Yesterday's weak UK Industrial Output data contributed to the weakness of the pound. UK Gilt yields fell to record lows.
AUDUSD: The aussie made initial gains to the intraday high of 0.7152 in the prior Asian session. However, only to see quick selllers and made extended losses in Europe falling from 0.7120 to 0.6980 (-140 pips) as the global stock markets continue its spiral down with the falling commodity prices, particularly the further decline of oil. WTI oil fell to $26.15 as of 12:00 GMT. The aussie also fell on AUDJPY selling, with JPY safe haven buying across the board. AUDJPY fell from 81.60 to 77.50 (-410 pips) on the intraday chart.