MARKET TALK: Risk Surge Keeps USD On Back Foot -BarCap

Risk surge keeps USD on back foot, says Barclays Capital, noting that the Sensex gapped above its 2011 October high overnight, signalling an improvement in investor sentiment and pressuring USD as a result. BarCap says that USD backed away from important resistance levels but warns that a renewed slide in the greenback is not a one-way bet just yet as profit taking continues. Adds, however, that if the improvement in investor confidence gathers more momentum, USD could extend losses. EUR/USD at 1.3174, USD/JPY at 78.52.