Archived IMT (2008.12.12)

The dollar's losses were particularly highlighted against the yen, as USDJPY broke to fresh 13-year lows at 88.31 yen due to the Japanese currencys continued outperformance in global FX markets and the dollars broadening woes. One distinct difference from yesterdays trading is that commodities and higher yielding currencies have come off their highs as the deepening losses in global equities prompt a fresh wave of risk aversion, thus dissipating the recent impact from the USD-driven losses. This is manifested in sharp sell-off in JPY crosses (yen gaining versus the rest) and a broad retreat in CAD, which continues to thoroughly show its inverse relation to risk appetite. WATCH OUT FOR US RETAIL SALES and UNIV of MICHIGAN later today.