Credit Crisis Deepens

The credit crisis is deepening as it is becoming clear the economic problems are not confined to the U.S. The news drastically affected prices over the weekend and continues to do so even before the open of the European markets today. For example, since the Asian markets opened, the AUD/JPY has dropped 450 pips. To put that into perspective, only a hand full of weeks all year have seen 450 pips worth of drop or climb from the AUD/JPY and we have seen that in a matter of hours. The case is similar with many other pairs which more than likely means we are in for an amazing day.