Yesterday, markets witnessed the second consecutive cut in just about a week, all surprised by the situation the US economy is in nowadays, it was all speculations and expectations, no one really understood that the US economy had fell into the recession trap. A whole 1.25% cut was to really revive the markets once again but is it enough, or will they still will face large complications later on?

After the 50 basis point cut made by the feds yesterday the Euro recorded a high of 1.4909, dropping at the early trading hours to trade now around 1.4861 levels; as we are waiting for a full calendar filled with European fundamentals, some about the unemployment status and the official CPI reading that will confirm that inflation is still breaching the ECB comfort zone and the 3% level, finally with some confidence data. Earlier today Germany released some retail sales data, indicating a huge drop, where the monthly retail sales fell 0.1% coming worse than expectation of a rise 1.5% but slightly better than the previous drop of 1.9%; the yearly retails dropped widely to -6.9% levels worse then the previous and expectations; after these weak data the 15 nation currency dropped down to 1.4858 levels.

The British pound is still struggling under the 2 dollar levels, not having enough momentum to breach it once again due to its weak data but at the same not supported by the weak dollar too, indicating that these two currencies nowadays are really tumbling with their internal economy weaknesses. The royal currency recorded a high of 1.9906 at 6:00 GMT and a low of 1.9825 at the early trading hours.

Finally with the USD/JPY pair dropped to 106.03 levels, as the dollar continues its losses after the US second rate cut yesterday, giving the Japanese Yen some push to strengthen, letting it take advantage from the endless weakness the US dollar is facing these days.