Well it should prove to be an interesting week, with the market already fully pricing in a drop in rates from the FOMC on Wednesday. It will be interesting to see what happens, remembering that the market spiked 300 pts North when 'Bad News' Bernanke pulled the trigger on the Fed Put.
What we need to ask ourselves is; "is the US economy really that bad?" I know I've been rubbishing it in recent posts, (mostly as justification for my long AUDUSD position), but should the Fed really be rushing to stimulate the American Economy? The fundamental driver of the big American Machine is consumer spending, which seems to be continuing with the same reckless abandon as always. If I was Bad News, I'd be more worried about inflation as Oil cracks the ton than whether or not a few property flippers in Florida will be able to service their loans. ANyway, it should provide a bit of interesting volatility, which will give traders and investors alike some good entry and exit points in the coming days.