The Dilemma For G-7

Another wild night of volatility across all capital markets saw key levels give way in gold, equities and the euro as risk liquidation continued unabated ahead of the NFP report at 13:30 GMT and the G-7 meeting this weekend. With liquidity extraordinarily thin ahead of event risk later in the day, the price moves were highly exaggerated with gold tumbling to $1050/oz. Dow futures breaking below the 10,000 level and EUR/USD hitting multi month lows at $1.3650 all in a matter of minutes at the open of European trade.