By Nigel Hodges of Currency Solutions

If you find the word 'volatile' offensive, please look away now. We wrapped up Monday's report by reiterating that only the brave or the foolish would attempt to predict the markets at the moment but seldom have we experienced such chaotic times.

It's not difficult to make the case that this is the worst period of financial distress since the Great Depression.

Just ten hours after we published our report on Monday, the House of Representatives in the US decided to knock back the USD700 billion US Treasury bailout of the finance sector. The news sent traders and investors scuttling off to secure their funds in the safest haven they could find - nominally the Swiss Franc and gold.

On Wednesday though, the Senate voted to allow a modified version of the rescue plan through.