Dollar eases over rate cut

The US lowered their interest rates by 0.5% to 1.0% last night which saw the dollar ease off dramatically against most of the major pairings.

Cable breached 1.66 and the Euro/Dollar pairing traded above 1.32 in Far East trading. China, Japan and Hong Kong all lowered their interest rates as well. The Fed also indicated there is still room to move rates further. Earlier in the day, we had seen the durable goods figure rise in the US unexpectedly but the rate announcement was the main market focus.   

Already today on the data front, we have had the Nationwide house price survey show that prices are still on a downturn in the UK and the German unemployment figure shows that they are still having problems.

Later this morning, we have the Euro zone consumer and economic sentiment figure due at around 10am UK time. This afternoon we have the preliminary third quarter GDP figure due for the US along with the weekly jobless claims; these figures should be released around 12.30 UK time.