Clearly, there is an intense debate surrounding the size of the market now in relation to the US economic outlook and the financial markets. Yesterday investors were watching closely the statements made by the ECB and BOE and though the dollar seems to strengthen today, yet the market remains edgy. The reason behind the edginess is due to market participants who still remain unsure about how the turmoil in the financial market will affect the global markets.

Meanwhile, the Euro may face further downside pressure against the US dollar amid yesterday's statement in which ECB president Trichet signaled he is open to cutting interest rates ECB as economic growth slows. The ECB which yesterday kept its rate on hold at 4% is taking a more watchful approach to monetary policy compared to the US Feds which slashed rates to a total of 1.25% reaching 3% in two moves during last month. At this point, the Euro continues to drop against the US dollar pushing the pair to record a low of 1.4449 after recording a high of 1.4499.

Elsewhere, the BOE decided as widely expected to cut rates yesterday yet by only a quarter point to 5.25% amid concerns of a slower economic growth. The central bank stated that its rate setting needed to balance the risk of a sharp slowing economic activity against the danger of high inflationary pressure. As for today, the Pound continues its downward trend against the US dollar, dragging the pair with it to fetch at this hour a low of 1.9405 after recording a high of 1.9453.

Disappointing economic data had the best of the Japanese Yen as the currency drops against the US dollar and as stocks slump, consumer remain cautious about spending amid rising prices of gasoline and food which in deed added pressure on the yen pulling it further downwards hence pushing the pair to the upside to record at this hour a high of 107.70 and a low of 107.17.