Market volatility likely to remain high today

Following a good start at the beginning of trade the Dow Jones and S&P yesterday went down. Following the example of the US the Asian markets are under massive pressure today and the quest for safe havens is in full swing. 

As a result EUR-USD is back above the 1.12 mark. S&P's downgrade of Brazil's rating to junk status (BB+) increases nervousness on the already jittery markets. At the same time there is no indication from the Fed as to where it is going as no FOMC members will be making any comments so shortly before the next FOMC meeting. 

"The motto now is, anyone who can afford to should buy volatility as it is going to remain high, otherwise the best advice is to stay well clear of large positions in current markets, which resemble a headless chicken", says Commerzbank.