Yesterday, as the FED made their 25 bps cut as forecast, the USD took a nosedive due to the lack of a clear message on their part.  This put a quick stop to the potential USD rally as the data was coming up all USD.  There had been stronger than expected US data and weaker than expected European inflation figures prior to the cut.  However, uncertainty in a signal on the FED's part was able to pause a much needed, potential USD rally.  (CONTINUED)

There has been much talk about a USD rally in the near future.  According to Barron's, "the dollar could gain 15% against the EUR in the next 12 months...USD reserves held steady in Q4 near the 64% mark, despite the greenback's accelerated decline suggesting that a reserve managers are reluctant to sell USD at these levels."  With speculation that the FED is going to be putting and end to rate cuts, tonight we have seen the end of the Asian session and start of the London session painting a positive USD picture.  Tomorrows US Job data, if positive could assist in giving the USD some serious momentum.