The effect in the market was not massive as investors were expecting the cut! The Fed's decided to cut benchmark interest rates by 25 basis points taking the overall rates to 4.50%. Also, a cut in discount rates took place making it 5.0%. With the housing market being of major concern to the Fed's, inflation risks remain to the upside but growth remains to the downside. Yesterday, majors were able to record all time highs against the dollar as the Euro reached 1.4504, the Sterling sky-rocketed to 2.0821 but the Yen couldn't keep up as it was dragged down to the 115.70 level. The economic calendar lacks fundamentals for the Euro Zone and the U.K. but offers a good day for the U.S. economy

The Euro could not maintain its high levels as it declined in today's session to record a high of 1.4475 and a low of 1.4416. Trading is currently taking place within the 1.4430 levels.

As for the Royal currency, it also declined to 2.0785 after recording a high of 2.0809 and a low of 2.0753. The U.K. economy released its PMI manufacturing reading for the month of October coming in at 52.9; worse than the predicted reading of 54.5 and September's revised reading to the downside of 54.7 from 55.1.

The Yen depreciated against the dollar taking the USD/JPY pair to record a high of 115.77 and a low of 115.17.

The U.S. economy will still release a set of fundamentals starting with the personal income for the month of September where expectations show a rise to 0.4% from the previous reading of 0.3%. Personal spending in September is forecasted to slightly slip to 0.4% from August's reading of 0.6%. As for the core PCE monthly reading for September, it is seen to have progressed to 0.2% from the prior reading of 0.1%. On the other hand, the yearly reading is expected to remain unchanged at 1.8%. Finally, the ISM manufacturing for the month of October is projected to dip to 51.5 from September's reading of 52.