The USD and JPY buying trend continued as the renewed risk aversion mood gained momentum. The fall in U.S. stocks on Tuesday helped underpin the risk aversion, but was aided by the disappointing Alcoa results, with the EUR under particular selling pressure after the dire Irish budget and forecasts for Ireland growth to decline by over 7% this year. Asian stock markets declined 2-3% today, helping fuel the JPY cross sales and boosting the USD. Late afternoon comments from Fed’s Fisher asserting that the EUR faces more problems than the USD sent the EUR to fresh session lows of 1.3166, after the EUR opened around 1.3275. USD-JPY fell from a spike high of 100.87, achieved during the Tokyo fix, to lows of 99.89 on the back of the cross sales. U.S. Treasury yields edged lower on weaker stocks. Oil prices declined as well on the API data from Tuesday and demand concerns.