The dollar picked up a bit of a safe haven bid after Chinese trade numbers printed far worse than expected triggering fears of further slowdown in global growth. China’s trade balance slipped to a surplus of only $4.8 Billion versus estimates of a 27.3 Billion number. Exports fell sharply and the overall surplus proved to be only one eighth as large as the month prior.

As the weekend approached in Asian and European trade the EUR/USD continued to drip lower over concerns about the viability of the currency and growing consensus that ECB will have to take rates below 2% in order to combat the creeping recession in the EZ economy. Yesterday’s comments by George Soros continued to reverberate though the FX markets in overnight trade as EUR/USD dropped through the 1.2900 handle reaching a low of 1.2835.