Risk aversion still 'dominant theme'

Jeremy Stretch, senior market strategist at Rabobank in London, said the bank held the view that risk aversion was still the dominant theme in the market and that deleveraging still had some way to run. "We felt that the dollar would gain additional traction despite the fact that the real economy data in the US was deteriorating quite quickly," he said.

The Dutch bank also expected that a flight to quality from unwinding carry trades would mean the yen and Swiss franc would, similarly, remain