http://www.cmsfx.com/en/forex-resources/video-news-and-analysis/daily-recap/03-17-08/
Steep volatility from Sunday night in the GBP/JPY, USD/JPY, EUR/USD calmed down in Monday trading with the Dollar paring some of its losses. The Pound is getting hit up as the UK faces many similar risks to higher credit costs that has been hurting the US economy. The Yen has been the biggest beneficiary to the market turmoil as "carry trade" - borrowing in yen and purchasing assets in high yielder like Aussie, Pound, etc - has been unraveling.
Tomorrow's Fed announcement at 2:15 PM will have a big impact on the markets. Rates were expected to be cut by 75 basis points, but now markets may be expecting a full 100 basis point reduction. Inflation data from the UK (5:30 am est) and canada (7 am) have the chance to affect those currencies. The US posts PPI data, along with housing (building permits and housing starts), which will probably not have a dramatic effect on currencies as investors will be waiting for Fed statement.
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