Rate Cut In Sight?

All eyes will be on the US FOMC today as they release their decision on interest rates today. Many are expecting a quarter point cut.The US economy has been hammered by a credit crunch, turmoil in the housing market and rising crude oil prices. The economic slowdown seems ripe for a rate cut. Add to that the increase in the Eurozone inflation rate and you have the makings for a volatile day in the EUR/USD currency market. We still expect the EUR/USD spot to gain strength and a test of 1.4535 should be next.