| EUR/USD | USD/JPY | GBP/USD | USD/CHF | |
| 1.46 | 116.7 | 2.11 | 1.1785 | |
| Resistance | 1.4535 | 116.2 | 2.0995 | 1.1735 |
| 14505 | 115.3 | 2.0875 | 1.167 | |
| 1.4375 | 114.45 | 2.075 | 1.1557 | |
| Support | 1.435 | 114 | 2.067 | 1.154 |
| 1.4315 | 113.15 | 2.0575 | 1.1485 |
The yen rose broadly on Thursday after brokerages downgraded two of the largest U.S. banks, knocking equities lower and sparking fears that fallout from the credit crisis may sap investor appetite for risk.
Two of the hardest hit currencies were the Australian dollar and the New Zealand dollar, which have the highest interest rates among developed economies and have been popular targets of carry trades. In those strategies, investors borrow in low-yielding currencies like the yen and then sell them to buy higher-yielding ones in order to profit on the difference. Unwinding those trades benefits the yen. "Carry trades are being unwound, with the sell-off in global equities weighing on risk appetite," said Omer Esiner, senior market analyst at Ruesch International in Washington.
The U.S. dollar, though down against the yen, rose against the Euro for the first time in six sessions as markets pared back expectations the Federal Reserve will cut interest rates in December, analysts said. On Wednesday, the Fed trimmed its benchmark interest rate by a quarter percentage point to 4.5 percent and said that the chances of higher inflation are now roughly equal to the risk of slower growth.
The dollar traded around the levels of 1.4425 vs. the Euro, 114.55 vs. the Yen and 2.0795 against the sterling at 20:50 (GMT).
Trading in the U.S. dollar was quiet ahead of the October U.S. employment report due for today, which could heavily influence views on what the Fed may do at a policy meeting in December. A strong report might give some support for a further strengthening of the greenback.
Today's Economic Events
| Date | Event | Country | Period | Previous | Forecast | Significance |
| 06:45 GMT | CPI m/m | CHF | Oct | 0.10% | 0.70% | 3 |
| 11:00 GMT | Unemployment Rate | CAD | Oct | 5.90% | 5.90% | 3 |
| 11:00 GMT | Employment Change | CAD | Oct | 51.1k | 11 | 3 |
| 12:30 GMT | Unemployment Rate | USD | Oct | 4.70% | 4.70% | 3 |
| 12:30 GMT | Non-farm Employment q/q | USD | Oct | 110.0k | 80.0k | 3 |
| 12:30 GMT | Average Earnings Index +Bonus q/q | USD | Oct | 0.40% | 0.30% | 2 |
