FX Update: The dollar rebounded FX Update: The dollar rebounded as the market turned to the U.S. currency in an risk averse environment as European stocks turned sharply lower. News that Spain's auction of 10-year paper fell short of target was both a symptom and a risk-off catalyst, while the Ebola outbreak is inviting comparisons in the media to the economically disruptive 2003 SARS outbreak in Asia. EUR-USD dove to the low 1.27s from levels around 1.2800. USD-JPY dropped back to the mid-105s from levels above 106. Not surprisingly, the AUD underperformed, briefly breaching 0.8700 versus the USD and declining to a five-month low against the EUR.
FX Update: The dollar has consolidated Wednesday's losses FX Update: The dollar has consolidated Wednesday's losses seen after soggy U.S. PPI and retail sales data. Asian stocks continued to tumble, and another risk-off day looks likely in Europe amid fears about Ebola, which is inviting comparisons to the economically disruptive SARS outbreak in Asia in 2003. This backdrop may curtail dollar losses. EUR-USD has trod a narrow range in the low 1.28s before dipping below here in early London trade, putting yesterday's three-week peak at 1.2886 out of scope. USD-JPY has posted a narrow range in the low 106s, near to the New York closing level and some way above yesterday's five-week low at 105.19. BoJ policymaker Iwata said that monetary easing is working.