Stocks kept gyrating swinging between gloomy recession evidence and rising hopes that all the weak data would bring another aggressive cut in interest rates when the Feds meets next week. Officials are predicting that there will be an economic rebound once the impact of the Feds' cuts and the recent economic stimulus begin to be felt. However, analysts are not as enthused, worrying that the economy is being hit my multiple blows and noting problems such as the slump in home sales and mortgage defaults are showing no sign of reduction.

The dollar resumed its downtrend against the euro in the afternoon today as investors bet the Feds will keep easing interest rates until the next quarter to revive the falling of the US economy. In turn, the rising euro drives the pair with it to the upside to record at this hour a high of 1.5651 and a low of 1.5589.

The uncontrolled increase of the euro rate versus the dollar threatens employment growth in the euro zone. Not to mention, the ECB's hawkish stance is fuelling the rise in euro and now officials are suggesting that the ECB should directly intervene in the foreign exchange markets before the euro-dollar exchange rates gets out of control.

Meanwhile, the British pound advanced against the dollar to fetch a high of 2.0355 and a low of 2.0291 on expectations that the US Feds will cut in rates aggressively. More in UK, inflation expectations are climbing and pressuring the economy which is already facing problems in growth due to the fallout in the housing sector.

The dollar meanwhile dropped anew as investors worried about the length and severity of any US downturn. The dollar dipped briefly below 100 Japanese yen. The dollar was also pressured as non-Japanese players sold the currency on their pessimistic view of the US economy and its currency.

The yen's strength is bad news for Japan's economy which has been showing signs of weakening as a stronger yen makes exporters product more expensive overseas.