Tomorrow is the day investors are waiting for; the European central bank and the bank of England are both meeting tomorrow to discuss interest rates. The ECB is widely expected to keep rates on hold at 4% while it is anticipated that the Bank of England will cut rates.

Fears about the US economy heading to a recession helped prompt the Feds to cut rates but however speaking about the ECB so far has kept open the possibility of raising its rates to ward off the threat of higher inflation.

The Euro fell against the US dollar as traders looked ahead of upcoming European interest rate decisions, dragging the pair to the downside to fetch a low of 1.4590 after recording a high of 1.4660. Similar to the euro, the pound was also lower against the US dollar ahead of tomorrow's interest rates decision, in which the pair recorded at this hour a low of 1.9556 after recording a high of 1.9662. As for the yen, it's fluctuating within narrow ranges pushing the pair to record a high of 106.71 and a low of 106.21

Equity markets look technically and fundamentally vulnerable and are hovering for further weakness thus the dollar is expected to develop further gains as investors move out of peripheral markets in light of rising risk aversion