(11:00 GMT - 11/12/07)
The Federal Reserve will meet to discuss rates today where analysts or at least most of them speculate a further 25bp cut in rates, while others speculated a half-point cut. The dollar fell against other major currencies as investors speculated that interest rates will be cut later today.

The European currency slipped against the US dollar amidst the release of the German Zew survey report where reading came in worse than expected pushing the pair to the upside to record a high of 1.4750 and a low of 1.4684.

The Pound rose against the US currency on speculation that the Feds will cut in rates today further weakening the dollar. Ahead of the release of the British trade balance data for the month of October, the pound showed mixed trading. However following the release, the pound strengthened and continues to hike against the US dollar to record a high of 2.0520 and a low of 2.0441.

The yen declined pushing the USD/JPY pair to the upside to record a high of 112.13 after recording a low of 111.64 on speculative buying where all players are staying alert ahead of the Federal Reserve's interest rate decision later today. A further cut is expected, however if the market surprises us with a 50bp, this will likely boost US stocks hence encourages purchases of higher-yielding assets funded by loans in Japan pushing the yen further down.

Given higher than expected US employment data released last week, most analysts expect now the Fed to cut rates by 25bp, though some have yet to rule out a 50-basis point reduction. A 25 basis point cut is almost guaranteed, so if this really happens, US stock markets may tumble and the yen could rise. Should the Fed surprise market participants with a 50-baisis point cut, higher yielding currencies such as the euro and the British pound are likely to profit.