FX.co ★ Fundamental Analysis, August 05, 2011

The uncertainty felt in the market yesterday after the ECB meeting and after its timid and bond purchases clearly insufficient Portuguese and Irish, was extended throughout the day to spread the American stock markets suffered the biggest drop since 2008.

The move yesterday was the liquidation of assets across the board, even gold, usually shelter was sold by the investors chose to cash in everything.

In Japan, the yen volatility has moved to rumors of new interventions but do not seem to have occurred. Japanese officials, though, have returned to make statements warning the market that will not allow its currency continues to rise, like the Swiss National Bank governor in similar demonstrations and nothing common in this entity by its forcefulness has said act with firmness in the foreign exchange market against a stronger Swiss franc.

The drop in oil prices caused by fear of recession has had a dual effect on commodity currencies like the AUD and CAD who have suffered major setbacks.