After investors engaged in carry trades yesterday, and the dollar was doing well only against the Yen, markets seem to have calmed down a bit despite the fact that BoE and ECB will release their rate decisions later today where both banks are expected to hold rates steady.

The Euro is still going strong as their fundamentals keep flowing in showing a positive sign for the well being of the Euro Zone. The high levels are still a threat to exports which account a major portion of the economy but the ECB's Mr. Trichet doesn't seem to worry. The Euro recorded an all time high of 1.5306 at the major resistance level in the early morning today against the dollar and is currently consolidating within narrow ranges.

As for the Royal Currency, trading is now neutral after successfully recovering some of the previous losses recorded yesterday. The pound remains volatile and the directions of the pair is not quite clear after mixed signals released from the economy indicating that confidence is a bit shaky but PMI services was still going strong showing expansion in the sector. The pair recorded a high of 1.9932 and a low of 1.9893 where the wave is still sideways.

The pattern is the same in the market where we witness again calm trading for the USD/JPY pair. After being the sole loser against the greenback yesterday due to carry trades, the Yen now is holding the dollar back within stable levels since the early morning. The low was seen today at 103.49 after recording a high of 103.99 earlier.

On the other side of the globe, the Reserve Bank of New Zealand released their rate decision where officials decided to hold them steady at 8.25% as widely expected.

The day is full of rate decisions and the highlights for today are both the ECB and BoE. Markets locked in expectations but will there be a surprise cut or hike? We're just hours away from finding out...