The piecemeal nature of the European banking system continues to unfold with Spain the latest to add to deposit guarantees.
US equities continue their downward spiral, down 675 points, but currencies have stabilized. There remains a reluctance on the part of dealers to push too aggressively against the 100.00 level in USD/JPY for fear of a bear-trap via BOJ intervention. USD/JPY trades at 100.60.
Aussie remains downtrodden, eying earlier lows just below the 0.70 level as commodity currencies remain hard hit by the combination of risk aversion and commodity selling as a global recession is feared.