EUR/USD clocked a four-and-a-half month high to 1.3972 earlier, after an early European bout of dollar selling. The narrow trade-weighted dollar index simultaneously made a near five-month low. The EUR has also gained against GBP, CHF and the JPY, as well as other currencies, benefiting most from the prevailing concerns about the U.S. AAA status after Moody’s U.K. announcement and PIMCO’s Gross warning yesterday. The interbank market is now gunning for 1.4000 and stops above in EUR/USD. USD/JPY remains heavy though talk of Kampo bids near 94.00 is providing an underpinning. The nature of the current price action has changed from the recent past, as current risk aversion is not prompting USD safe haven buying with the market consumed by the erosion of the U.S. currency’s reserve currency status.