Following Wall Street, Asian Equities Collapses

Market Brief

The Usd was stronger against all the G10 currencies except the Jpy & Chf in Asian Session, as equity markets take another dive. The EurUsd fell from 1.3695 to 1.3501, while the UsdJpy slid from 100.84 to 98.80. The Gbp felt the brunt of investor's fears, as the cable collapsed from 1.7257 to 1.6796. Yesterday's massive losses on Wall Street, carried over into the Asian session, with the Nikkei -9..62% & Hang Seng -7.03%. European stock futures are pointing to a negative opening.. As pressure intensifies and efforts by policy makers fail to stem the tide, the G7 today meeting could be critical. There were hints that the US government is now pondering guaranteeing bank debt and considering temporarily backing up all U.S. banking deposits, a move similar to that seen in Europe & UK. Commodity prices were softer with crude prices falling -4.92% and gold up slightly to $916.53oz

With no major events or data releases scheduled today, markets will be again keeping one eye on the equity markets and the other on the news wires. We expect the continuation of recent FX trends, with risk aversion favoring the Usd & the Jpy.

ACM FOREX

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