London bomb attach sends shock waves around the globe

Europe was left stunned last night when terrorists struck in the heart of London setting off a series of bombs that left at least 37 dead and over 700 injured including 7 Australians.

The coordinated attack came during London’s morning peak hour striking 3 different underground stations within minutes of each other. Another bomb blast on a double-decker bus came an hour later leaving London verging on a state of panic.

A group known as the Secret Organization of al-Qaeda in Europe claimed responsibility. British PM Tony Blair immediately left the G8 summit in Scotland for London. He was vowed to bring those responsible to justice.

As news of the attacks filtered through, the USD was sold off. Fears of further terrorist attacks in the US escalated pushing the Aussie dollar up to reach 0.7465. The rollercoaster ride continued into the night but as fears abated, markets corrected leaving the local unit close to where it started the evening.

Central Bank announcements were almost overlooked as news of the bomb blasts dominated news wires. Both the Bank of England and the European Central Banks left interest rates unchanged as expected.

The uncertainty in Europe stalled the Aussie slide overnight. Today could see the CHF and USD appreciate an investor switch to safer territory.