Following its peers in the US, UK and Canada, the ECB may also trim rates to help stimulate the global economy. The rate cuts are aimed at boosting liquidity and easing the credit crunch, restoring confidence and encouraging consumers and businesses to start borrowing, investing and spending again.

The currencies are likely to trade with in a pretty tight range amidst the Feds meeting next week. Players are still cautious as some analysts are betting that the Feds might just lower interest rates again by at least a quarter next week.

Yesterday's bounce back in US stocks offered some reasonable optimism, yet the question still remains; is it safe for investors to negotiate now. My advice is, probably not because it's unwise to assume that the market's troubles are over. Why? Because the underlying causes of a likely recession are deeper and broader.

As for the ECB, well president Trichet suggested yesterday that he was sticking to his anti-inflation stance (hawkish stand