Sovereign Debt Causes Wild Forex Day

With fiscal liquidity concerns spreading like wild-fire across Europe, the EURUSD sold-off at a frightening rate today falling by over 150 pips to its present value of 1.3730 (see hourly chart). The correlated Dow Index also tumbled by over 260 points finishing the day just above 10,000.

The safe-haven Yen and Dollar surged against other major currencies with the Yen being the main beneficiary. The USDYEN fell almost 200 pips and currently sits at 89.00 whilst the EURYEN collapsed by a staggering 400 pips posting 1.2215 at present.

The next twenty-four hours could be equally dramatic. Markets not only have to come to terms with the European financial issues but will also have to contend with the release of the US Non-Farm Payroll figures at 8.30am EST tomorrow.