Durable Goods

Big drop in durable goods and the market reaction is quite muted. Cable traded within a 15 pip range post announcement. I expected a bigger reaction to the news.
And it looks like GBP/JPY is getting sold off. Looks to me like carry traders liquidating positions.
What's going on?

You answered your own question...

JPY is packing up. See how USDJPY dropped already?

This refrences AUD, but it sums up the market situation nonetheless:

[14:27 AUD/USD: Fresh Lows As Risk Aversion Concerns Mount] San Francisco,February 27. The AUD/USD has reached fresh lows of 0.7908 as risk aversion concerns continue to mount with a plethora of factors emerging that is seen exacerbating the current cross market sell-off that should spread to other asset classes such as equities.

* Margin debt hit a record high of $285.6 bln in January according to reports last Friday, the highest since March 2000, just before a two-year stock decline. This could exacerbate pressure on the stock markets.

* US Bank reserves to cover bad loans are at the lowest since 1990

* EMBI spread on emerging market debt traded to fresh record lows of 164 bp last week compared to 245 bp the end of Dec 2005 and is ripe for a correction, adding to emerging market pressure and risk aversion

* Gold producers reduced their hedgings by 25% last year which according to
MarketWatch is the sharpest drop in five years, which increases the risk for a gold sell-off if the current metals decline continues

These are all factors that will add to market nervousness and sustained pressure on the AUD. A push under 0.7800 in coming sessions is likely as higher risk and falling metal prices are factored into the market.

AUDUSD for 0.80!!!

Lots of pairs are at some historic levels now..

The yen has soared today on all fronts. made 50 pips off that.