Volatility Abounds as Euro, Pound and Yen Go Their Separate Ways

A very busy night of trade in the FX market with the most vicious volatility coming from the USD/JPY pair which went on a wild ride during the Asian and early European session seesawing between 89.50 and 90.30 as it was caught in the crosscurrents of opposing newsflow. The yen initially strengthened on a report that PBOC increased internal reserve requirements for Chinese banks yet again but then skyrocketed to 90.30 on an announcement that S&P downgraded Japan’s debt from stable to negative.