The Japanese yen was looking at a modest selloff across the market Wednesday as temperate gains in stocks and a lack of major event risk left fundamental traders to speculate on the future of the carry trade. Yield differential expectations (the different between rate forecasts for high-yielding and low-yielding currencies) continued to fade with both the pound and Aussie dollar taking on additional weight after disappointing data.

However, risk was relatively untouched. This may not be the case tomorrow though as one of the market’s top pieces of event risk crosses the wires. The revision to US 2Q GDP will not only offer a forecast for export demand, but it will also spur speculation for revenues from the major US banks – the source for most of the world’s write downs and arguably the credit crunch itself.