The risk-off theme witnessed during...........>

FOREX: The risk-off theme witnessed during European and US markets yesterday

continued into the Asia-Pacific session overnight, with regional equities

trading in negative territory and weaker US Tsy yields. Euro-dollar initially

opened heavy in Europe, the rate managed to squeeze out a fresh low of $1.1785

but was quick to pare losses. Short covering took the rate back above $1.1800 as

the dollar remained defensive. A combination of weak UST yields/Nikkei futures

saw the euro lift to $1.1853 despite traders highlighting negative divergence on

the hourly charts. Cable supported by the Eur-Usd rally traded either side of

$1.3200 ahead of the UK data. Rate lifted to react highs of $1.3214 after the

report showed employment in the three months through September fell by its

largest amount since April-June 2015. Eur-stg short covering and the break above

stg0.9000 added weight with a quick reversal to the $1.3145/50 area. Usd-Jpy

remained on the defensive, risk averse markets saw the pair slip from Y113.23 to

Y112.65, triggering stops on the move. The 100 & 200-dma's at Y111.73/Y111.77

respectively, may come into focus. Aussie remained in consolidation mode tied to

a narrow $0.7576-0.7601 range.