The ECB has disscussed cutting rate this time as expected pushing the single currency lower across the broad. The ECB has started to pave the market for an easing action in the face of the current financial market turmoil after the drop of the oil and commodities prices across the broad on the growth worries and the negative impact of the current credit crises on the growth in EU too. Technically breaking lower than the pair recent low at 1.399 is a very bearish sign. The next major support is at 1.336.

The Greenback which is getting support currently from the lack of liquidity and the risk aversion as the buying back currency of the global investing risks has found some optimisim from yesterday senate approving of changes of the rescue plan which can some tax cuts to the market from another side to be pass in the next congress meeting by the end of the week as the US rescue package is still containing the market sentiment and a new rejection of it can cause a serious damage to the equity market and the US dollar versus the Japanese yen but it can add more owes to the single currency versus them as the current squaring and risk aversion can persist on the increased mistrust.

Best wishes

FX Consultant
Walid Salah El Din
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