Today trading seems calm as the calendar is empty of US fundamentals. However the fight still remains in tact for the US dollar especially after previous news on the housing and CPI which contributed to the uncertainty and risk that the dollar is creating and now the outlook is not appealing. The calendar today focuses on EU data and that my fellow reader can have an affect on today's trading.

Banks are still suffering from the US mortgage crisis which makes them far more reluctant to lend. The dollar continues to edge down against the euro on speculation the Feds will cut the benchmark interest rates further to help revive the slowing economy. As for this hour, the pair was dragged to fluctuate within narrow ranges to record a high of 1.4817 and a low of 1.4788. Market participants now are likely to focus on the French consumer spending and business confidence indicator, Euro-zone PMI and consumer prices index which are expected shortly in which it will provide hints about economy's outlook.

Europe clearly feels the impact of the global spin in terms of lower growth and higher inflation. It is highly recommended that governments should cut debt and open up labor markets to assist their economies in handling the global shocks.

The European commission forecasted a cut in growth for the euro zone to 1.8% this year. Accordingly to the argument, the global economy looks unusually uncertain. The financial turmoil followed by the sharp fallout in the US accompanied with high prices of energy and food will hit growth. And according to the European commission, the solution lays within a pick up for the US economy and an ease n the credit crunch crisis.

On the other end, the pound bounced higher yesterday after UK retail sales came in far stronger than expected easing expectations that the BOE will cut in rates aggressively. As for now, the pair is fluctuating within narrow ranges, still towards the upside though to fetch at this hour a high of 1.9684 and a low of 1.9610. However, it is also forecasted that the British economic growth will fall this year to 1.7% as we continue to see a drop in housing prices which will definitely affect the currency negatively. Yet a weaker pound maybe good as it helps the currency's exports by making them cheaper to sell abroad.

With the credit crisis fears and losses made, the hesitance and risk aversion is once on the back of the yen as investors are not halt from buying back the low yielding currency. The yen today continues to strengthen driving the USD/JPY pair to the downside to record a low of 107.19 after recording a high of 107.57