The move done yesterday where the Feds arranged to inject $200 billion into the financial markets to ease the current credit crisis, had allowed risk appetite to pick up again however it proved to be short-lived with may feeling that the move will not do more that ease the situation slightly which in turn cased the dollar to drop back again losing all of the gains it enjoyed previously.

Meanwhile, the euro continues to rally against the dollar following EU industrial production data came in well above expectation suggesting that the ECB will not be cutting interest rates any time soon. The EUR/USD pair therefore was pushed to the upside to record at this hour a high of 1.5503 and a low of 1.5337.

Elsewhere, the sterling was mixed in trading with its major counterparts on Wednesday. Yet better than expected UK data boosted the pound against the dollar. Not to mention, the pound is benefiting from the everlasting weaken dollar pushing the pair to the upside to record a high of 2.0240 and a low of 2.0056.

The USD/JPY pair on the other hand is trading within narrow ranges with no clear direction trading at $102.51 level mark.

The markets are waiting for key reports due out later this week looking for more clues on what the Feds will do next week's meeting. Another interest rate cut is largely expected but the chances that the Feds will cut by one percentage point seem to be out of question.