Oil fell heavily, gold is respecting it's trend line, the Aussie is lower and with the Kiwi above 72 cents that means AUDNZD is lower and perhaps headed toward parity. But before that happens we have a hugely important release of non-farm payrolls tonight.
It was a bad night for risk as echoes of 2007 were heard across markets after news broke that 3 UK property funds had halted redemptions. Throw in the Italian banking crisis and stocks, the Aussie dollar, commodities and Sterling fell. Bonds, the Yen and gold were bid as result.
Gold is banging on the underneath of important long term resistance which if it breaks will substantially change the outlook for gold and precious metals more broadly. Likewise the Aussie dollar is strong after inflation data and as Forex traders bet the RBA will issue a hawkish governor's statement.
Special Edition: The result of the Australian election has put the Aussie dollar and local stocks under potential pressure. In this special edition we evaluate the outlook.
Markets continued to settle overnight with solid moves higher in European and US stocks. But that rally belied the continued strength in gold and the selling that came into sterling above 1.35. That suggests this rally could prove tenuous.
Sterling is under pressure again this morning as the political fallout from the vote to leave the EU increases uncertainty for the pound and global markets more broadly. This is not a Lehman's moment, yet. But it's clear investors are worried.