Currencies are settled this morning ahead of the long awaited key decisions from the European continent midday today; expectation are already locked in the market and nothing much affected the movement in the Early hours on trading in Asia today, despite of comments from US official regarding the fed's ability to keep with the substantial easing, and even that did not provide the dollar with any momentum against its rivals.

The euro will now withhold the tight range it built, not until the decision is out, yet until Mr. Trichet speaks his mind, expectations that we will see those rates still at 4% while the press conference will provide somewhat a less sever tone on the ECB's dedication to taming inflation, while they start to gradually shift the tone towards growth; nevertheless we are not saying total shift of stance yet attention to growth while attempting to show all means to anchor the 14-year high inflation that runs now at 3.2%. The 15 nation star is now trading at its lows heading to record a low of 1.4599, after it breached the strong support at 1.4609 extending the downside after ranging 1.4637-1.4605.

The royal currency has as well lost its bling, with weak outlook and expectations of slowing economy the pound and the dollar are in race to which is weaker! The dollar seems to be gaining strength the past couple of days, yet the case it majors are weakening as new outlooks are being printed as investors dump them with the hazy outlook and volatile equities and head to safe treasuries and bonds. The cut expected off the benchmark today by the MPC is 25 bps and not more in order to restore liquidity and prevent the housing market from deepening the fall, stimulating economic activity. Sterling at this hour extended the tight trading range to the down side to set as low as 1.9557 while the highest was set at the top of the range at 1.9622, currently the pair is trading near 1.9560s.

The Japanese yen remains the indistinguishable currency of them all, as its movement now is tied to market participants' perception to markets and what mechanism they are to adopt at that time. Today the yen continued to weaken against the dollar setting the low in early opening hours at 106.26 rising from there to 106.65 and still we can notice the low volume and ranged trade as the pair lost momentum and is still stuck for the third week.