After the events of Monday where billions of dollars were lost and the reliance on the Chinese economy became blindingly obvious, there has been some considerable correction today. The EURUSD has come back to closer to 1.14. The GBPUSD has slipped back to around 1.55 and looks to be a little more stable. However the GBPAUD as stayed around 2.18 and the GBPNZD has stayed close to 2.41, showing that these currencies are not making up the ground they lost. It looks like the bubble has burst in China and the Peoples Bank of China will do everything they can to stop things getting worse. Interest rates may be cut further, but many commentators are unsure whether it will be enough. Volatility is expected throughout the week.