The U.S. Federal Reserve is expected to cut Interest Rates by 0.50% later today, which may bring an end to the USD's recent upward mobility. As the gap between American and European Interest Rates widens, the EUR is beginning to find solid ground on which to stand. Some big changes are in the works and traders should pay close attention to the response of equity markets to determine how to continue with their EUR and USD positions.

Today’s US Dollar Trading
 
•    USD falls back for the most part
•    Volumes a bit better late
•    Traders note a correction is likely

The JPY today is seeing extreme volatility in today's trading. Potential Japanese government intervention in the Forex market may be influencing the sharp price movements. Traders are advised to can take advantage today of the vast market swings.

The USD may in fact lose its direction this week from the opposing forces affecting it. The EUR may see a reversal emerge from world data worse than its own, and the Japanese economic slowdown is cutting into the value of the JPY. This week, traders should expect some intense volatility in the market as these elements play off one another and generate one of the more interesting weeks for investors. Don't miss out!

Today’s US Dollar Trading
 
•    Traders note volumes and conditions at almost zero
•    Stops drive a lot of the majors lower
•    USD/JPY into the 97.00 area

Overnight Preview

•    Look for consolidation and a quiet night
•    USD likely to be sideways ahead of data

Looking Ahead to Thursday
All times EASTERN (-4 GMT)
•    8:30am USD Unemployment Claims
•    10:00am USD HPI m/m
•    10:35am USD Natural Gas Storage
 

Today’s US Dollar Trading
 
•    Two-way trade after the open
•    US data negative but traders still watching credit
•    Technical trading finds some stops

 •    USD has a technical day, holds S/R
•    Volumes continue to remain off
•    Traders remain unsure how to play the bailout