The US markets were closed yesterday and nothing much happened in the euro zone that would give the currencies the momentum to move. As for now, the dollar seems to be under a lot of pressure giving most investors are anticipating that the Feds would lower interest rates next month.

The direction of the dollar looks like its dependent on the Feds statement after the meeting and more rate cuts mean a downside trend for the dollar. The euro is inclining against the dollar as investors stay ahead of the release of housing and other economic data. As a result the pair was pushed to the upside recording at this hour a high of 1.4728 and a low of 1.4640.

Meanwhile, the sterling pound inclined against the dollar as the greenback weakened despite the pressure on the UK economy. I guess after all, the weakening dollar is more vital. It seems that the dollar took position ahead of a stream of key economic data tomorrow including housing starts and inflation as well as the minutes of the Fed's meeting last month. The pair therefore moved to the upside to record a high of 1.9549 and a low of 1.9473.

Elsewhere, the dollar dropped sharply against the yen on vague speculation China's central bank will raise interest rates to seek a stronger currency to hold against inflation. Adding to the scenario, the everlasting weaken dollar supported the rally of the yen hence pushing the pair to the downside to fetch a low of 107.65 after recording a high of 108.27.