(07:30 GMT - 13/12/07) The Feds action to lower interest rates did not match the economy's outlook as the FOMC decision underlined the very difficult financial market conditions that still exist and indicates that more easing will be required by the FOMC in order to limit the impact on the economy. However with the Money Auction in hand, possibilities of a good experiment to see whether the Feds are in the right direction, are getting closer towards the light.

An outside factor dominated the euro early this morning, as France is releasing the consumer price index data for November where the euro showed a mixed trading against its major counterparts. However the euro edged down against the dollar as the greenback started to gain strength pushing the pair to fetch a high of 1.4736 and a low of 1.4699.

The pound dropped against the US dollar after a report showing the housing market is slowing down in the UK economy pushing the pair to the downside to record a low of 2.0413.

As for the Yen, market shows the yen is inclining gradually against the dollar on speculation losses made by the credit market will prompt investors to avoid higher-yielding assets funded by loans in Japan. Thereby, the USD/JPY pair dropped to record a low of 111.55 after recording a high of 112.24.