It was a brutal night on the markets, with all indices across the board down heavily. Most major markets are down over 10% over the last few days, meaning that we have actually gone through a market correction.

The Dow was one of the worst hit, plummeting to a low of 23,750.20, down almost 3,000 points from its all-time highs of 26,714.55 that it reached a week or two ago. It tumbled more than 1,500 points overnight as the upward momentum that the Dow has been famous for has been stopped dead in its tracks. The Dax was hammered as well, down over 1,300 points from its all-time highs, plummeting over 1,000 points over the last couple of days. It is currently trading at 12,266.15. The NASDAQ was also hit hard, tumbling over 600 points in the last few days, or around 10%.

The stock market bloodbath also affected currencies, with traders dumping their money in safe-haven currencies, leading to a strengthening of the USD. The EUR/USD fell more than a cent as stocks were clobbered. It went from a high of $1.24739 to $1.23609. It is currently trading at $1.23806. The GBP/USD suffered the same fate, falling around 2 cents, from a high of $1.41496 to lows of $1.39511. It is now trading at $1.39663.

Turning to today and there is still plenty of important information to be released. The Reserve Bank of Australia interest rate meeting will be held today. While it is widely expected that they will not raise rates, it will be important to observe the RBA Rate Statement and any commentary from RBA members, especially in the context of the market correction that has occurred. Australia is also releasing trade balance and Retail Sales data. Other information set for release today includes:

UK – BRC Retail Sales Monitor

Canada – Trade Balance, Ivey PMI

US – Trade Balance, JOLTS Job Openings, IBD/TIPP Economic Optimism

Europe – German Factory Orders, French Government Budget Balance, Retail PMI, German Buba President Jens Weidmann speaks

Disclaimer: The views expressed in this blog are those of the author only. Opinions offered in this blog are no guarantee of market direction and performance. Traders/Investors should not rely on this blog alone for their market information. This blog is not an indicator of market direction and performance. Trading the forex market is high risk and losses can exceed deposits.