World financial markets have been battered amid worries about a possible US recession and uncertainty about the mortgage crisis that has led to billion of losses at major banks. The main reason behind Saturday's meeting was to reassure the world that the US wasn't in a recession, however, they indicated that the economy would grow yet at a slower pace.
Although most investors expect the European Central bank to keep pat on interest rates for the coming months, expectations are rising for a rate cut. Today's secession started with a gradual incline for the euro against the US dollar followed by a decline at this hour to fetch a low of 1.4497 after recording a high of 1.4549.
The British pound was mixed against the US dollar after the world's top economies promised coordinated action to restore confidence in global markets. The pound at this hour is inclining against the greenback to record a high of 1.9544 and a low of 1.9490. The market is awaiting for reports on the consumer price inflation and Britain's quarterly inflation report. Those are expected to provide some insight as to whether the BOE will continue to lower its benchmark interest rate to ease the situation ahead.
After a brief uptrend, the Japanese yen declined against its major counterparts where against the dollar the pair was encouraged to fluctuate within narrow ranges to record at this hour a high of 107.08 and a low of 106.79