The USD started a bit better overnight but began to fall off as traders trimmed long positions ahead of today's economic news. This morning's CPI and Housing data was mixed for traders as lower CPI was offset by weaker housing data; the majors began a steady climb into the FOMC rate announcement which of course was the big news of the day. In a surprise move, the FOMC voted unanimously to cut rates a larger than expected 75 BP putting the FF rate at .25% and announcing to the world that the USD is now the cheapest currency on the planet.

Two-way technical trade holds pair lower until pressure from EURO lifts rate into resistance. Lows holding at 1.4900/10 area. Bounce off early weakness suggests buyers are willing on dips; aggressive traders can buy the next dip in my view, look for prices around the 1.4780 area on a break.

Rally in EURO holds under pressure from cross spreaders; stops finally enough to hold above 1.5200 area. Cross-spreaders likely keeping pressure on as GBP/EURO cross holds near lifetime high. Although close is above the 1.4850 area the failure at highs is still a caution.

The USD remains under pressure to end Monday as several technical levels fail putting the majors on the offensive into tomorrows' FOMC meeting. Analysts remain optimistic for a 50 BP cut in rates adding a bit of weight to current USD sentiment. At this point the USD remains the worlds' number 2 low-yielding currency with only the Yen providing less. With year-end repatriation into higher-yielding currencies as traders square-books with only a few solid trading days to go into year-end the USD appears likely to suffer more losses this week.