Crude Oil fell below $50 per barrel as fears of US automaker bankruptcies escalated and comments were made by Treasury secretary Geithner last weekend that some banks may need “large amounts” of assistance to weather the current crisis. The CBOE Volatility index bolted more than 10% to above 45 and risk appetite appears to have taken a pause as Dollar and Yen crosses have seen appreciation for the two currencies. Of note, the relationship between the GBP/JPY and the price of oil remains strong and a fall in oil may signal appreciation for the Yen against the British Pound. The pair traded as high as 145 Yen to the Pound before pulling back to the current level at approximately 137.50. Despite the pullback, the pair remains well above the mid-January low of 118.80.
