Currencies fluctuated heavily with the start of the session today amid the high level of uncertainty, where pessimism spread in the market and the sentiment deteriorated further after S&P placed 15 euro-zone nations under credit watch negative including Germany and France; however, the euro zone GDP figures confirmed the 0.2% growth in the third quarter, which eased the tension slightly especially when all eyes are still looking forward to the European Central Bank and the European summit this week.

The euro recovered some of the losses incurred earlier today, as investors are still looking forward to the European Central Bank and the European Summit, where the rating agency threatened that credit rating cuts are possible in case European leaders were unable to quell jitters by finally implementing the plans approved before; however, in case European leaders passed the test and tackled the debt crisis, optimism should spread in the market.

The EUR/USD pair opened the session today in Asia at $1.3398, and recorded the highest at $1.3427 and the lowest at $1.3332, and is trading now around $1.3400.

In general we expect markets to remain slightly illogical and unreasonable, while volatility and heavy fluctuates are highly possible until European leaders agree on how to solve the debt crisis once and for all. In addition, the European Central Bank will also quell jitters in case the rate decision came in line with market speculation, which indicates that the Bank is expected to cut rates by 25 bp in order to spur growth and revive the recovery.

The U.S. dollar gained momentum earlier today; however, the greenback reversed to the downside after the gross domestic product figures from the euro-area region confirmed that the region grew by 0.2%.

The U.S. dollar index (USDIX), which tracks the dollar's movements against other major currencies, opened the session today at 78.56 and recorded the highest at 78.87 and the lowest at 78.44, and is currently trading around 78.55.

The Australian dollar recovered some of the losses incurred earlier today, where the Reserve Bank of Australia cut the key rates today by 25 bp to 4.25% from 4.50% amid rising uncertainty from the escalating debt crisis, which in result sent the Australian dollar to the downside against the American dollar; however, the weakening greenback supported the Aussie to recover some of the huge losses seen.

The AUD/USD pair opened the session today at $1.0268 and then reversed to the downside reaching the lowest at $1.0154; however, the pair gained some positive momentum and returned to trade now around $1.0227.

Moreover, the Canadian dollar lost strength against the U.S. dollar ahead of the rate decision later today, with expectations the Bank of Canada will keep rates unchanged at 1.00%.

The USD/CAD pair opened the session today at 1.0160 and recorded the highest at 1.0206 and the lowest at 1.0141, and is currently hovering around 1.0186.