The news of the rate cut helped the US dollar gain against the Euro, but only temporarily, as the greenback gave back all of its gains early this morning. The accompanying statement has pointed to improved inflationary conditions however the housing market still weighing in on economic growth. Talk among traders signals falling confidence in Federal Reserve decisions as investors believe further rate cuts are in store.
Precious metals direction is undecided for now as the US dollar re-adjusts after the rate cut. Spot Gold and Silver have moved sideways for last three weeks but keeping in a bullish bias with the metals holding above $785 and $14.00 respectively. Expect range bound trading until the US dollar either breaks out or down.