Statements from the US Treasury Secretary Mr. Henry Paulson and Philadelphia Fed President Mr. Plosser seem to still have an affect on the markets as it supports the US dollar against majors in the markets. The hawkish stance seen by Mr. Plosser and him favoring a rate cut "sooner rather than later" alongside President Bush's agreement to sign the rescue plan for Freddie Mac and Fannie Mae is somewhat helping restore confidence in financial and equity markets.

After plunging from near record highs, the single currency was trading sideways today before recording a new intra-day low at 1.5717 where the high slipped just below the 1.58 resistance level at 1.5797 as it failed to breach it. Fundamentals weren't supportive today either as the currency is currently trading among the 1.5748 – 1.5758 levels. Lacking enough bullish momentum, the pair will seem to be continuing the neutral pattern unless breaking the minor resistance levels mentioned to target the 1.58 once again.

The only winner so far in the markets, the pound was able to recover some of yesterday's losses as it returns back above the $2 psychological level to record a high so far at 2.0023. The statements from the minutes showing that a three way vote was witnessed among the committee was somewhat a boost as it showed the MPC's main concern was again on inflation. The low so far is at 1.9902 but building a solid base above the $2 level could take the pound once again to 2.0024 and possibly the 2.0035 level. The pair is overbought on the hourly charts yet a correction to the downside seems slim as other indicators show that trading is of high volume with the bulls outnumbering the bears.

As for the USD/JPY pair, it has initiated a new ascending channel yet failed to build a solid base above the 107.85 where if it had done, could've possibly targeted 108.30 before extending the wave to 108.59. Momentum indicators are mixed as its not quite clear on whether a correction is to be witnessed soon but the dollar still holds on strong. The pair recorded a high of 107.91 after recording a low of 107.16 earlier today.