After a day of panic yesterday, financial markets stabilized during the Asian Session despite Japanese Nikkei dropping to its lowest point in more than a year (trading -5% at time of writing). USD/JPY which dropped as low as 110.98 yesterday, rebounded to 113.92 before stabilizing around 112.00 today. There are increased suspicions that the bounce in USD/JPY is attributed to the central bank of Japan intervening in the currency markets, as a very strong Yen would not be beneficial to the country's exports. Meanwhile, the EUR/USD weakened slightly, along with the GBP/USD. The commodity currencies also fell against the US Dollar, with AUD/USD declining from 0.7125 at the Sydney open to a low of 0.7095.

Other highlights continue to be Oil's drop. Yesterday oil dropped to 26.04 before rebounding to 27 area. The oil price found support overnight from comments from UAE OIL Minister Suhail Al Mazrouei, hinting that coordination among major oil producers to stabilise oil markets could be in the cards.

Gold which rose $60 in two days, reaching a multi month high at $1263 dropped to $1231 before rising to $1243 this morning.

Today Volatility is likely to remain high and price action choppy. News of note are EU GDP and Industrial Production along with US Retail Sales which will surely be a market mover.