The market is trading in a volatile manner today as the calendar is full of important data to be released occupying the minds of markets players. Concerns that the US economy may slip into a recession need to be verified by economic data. Despite inflationary pressure the Feds are more concerned about the growth of the economy taking a dovish stand and thus analysts anticipate that the Feds will lower rates by 25bp.
In spite of the decline we see today, the dollar looks like is hardly moving against the euro as investors preferred to stay on the sidelines ahead if the release of the key economic data later today. The pair followed the euro to the downside recording a low of 1.4694 after recording a high of 1.4731.
The Sterling continued to slip lower against the US dollar on lingering concern about the banking sector in general while investors are focusing on today's BOE minutes. The pair is drifting towards the downside to record a low of 1.9460 after recording a high of 1.9501.
The Japanese currency will remain under pressure on speculation the central bank wont hike interest rates as the economy is facing risks from the slump in housing and financial market. Yet the dollar is weakening supporting the downside trend of the USD/JPY pair in which the pair recorded at this hour a low of 107.47 after recording a high of 108.17
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