(12:15 GMT - 06/12/07) Central bank announcement on key monetary events are expected later today where both the BOE and ECB will set their interest rates policy. The currency markets forecast no change in rates out of the ECB, however nearly everyone including analysts and economists expect the BOE to lower rates by 25bp to 5.5%.

Meanwhile the Euro continues to weaken against the dollar after yesterday's very strong ADP reading to record a low of 1.4525 and a high of 1.4621. Despite the incline in prices which indicates that price pressures remain elevated in the Euro Zone region, most traders expect the ECB to remain at a stop into Q1 of 2008. However, the focus this morning is on ECB president Trichet in which if Trichet hints for a possible hike in rates then the Euro should be able to recover losses as fast as it sustained them.

UK data were not looking good lately with retail sales, consumer sentiment and housing surveys all missing the score. For that reason, the final decision for the BOE was to cut rates by 25bp to 5.5%. The GBP continues to decline against the US dollar to record a low of 2.0180 after recording a high of 2.0309.

The Yen is dropping against the US dollar, the greenback seems to gain strength due to positive readings pushing the pair to the upside to record a high of 111.18 and a low of 110.65

The dollar is inclining gaining strength amid hopes that the economy may avoid recession. In recent months the US economy and its currency has been hit by the credit crisis and growing fear of a recession. However, better-than-expected productivity data and an imminent mortgage aid plan have eased some of these concerns. The final word now belongs to the Non-farm Payrolls report due tomorrow which will ensure the expectations of a further cut in rates if the readings turn out bad