In the currency market, the dollar was sharply lower against the euro. Late Tuesday, the euro was trading at $1.2707 vs. $1.2452 on Monday. All eyes were turned toward the Federal Reserve, which began meeting yesterday and will issue its interest rate pronouncement around 2:15 this afternoon, but the preliminary action in equities yesterday (Dow up almost 900) clearly indicated an expectation for a major cut.

In the currency market, the dollar prolonged its upward arc against the euro. Late Monday, the euro was trading at $1.2452 vs. $1.2641 on Friday. For the time being the US dollar is perceived as the safest place for money fleeing just about every other financial sector.

With an estimated $4 trillion daily, forex trading dwarfs other markets in terms of volume. And stock market chaos is driving more investors to the currency markets. Frank Hemsley says forex trends are prone to overshoot. That means the British pound could fall much further against the US dollar in the coming months. It may be a bold call, but Frank says pound-dollar parity by the end of the year is a real possibility.

In the currency market, the dollar slipped against the euro. Late Thursday, the euro was trading at $1.2917 vs. $1.2837 on Wednesday.

In the currency market, the dollar edged higher against the euro. Late Thursday, the euro was trading at $1.5503 vs. $1.5525 on Wednesday.

In the currency market, the dollar rallied again against the euro. Late Friday, the euro was trading at $1.5383 vs. $1.5421 on Thursday.

Can you talk a currency into gaining value? It seems Fed Chief Ben Bernanke and European Central (ECB) President Trichet think so. They’ve been telling anyone who will listen how serious they are about fighting the inflation monster that would cheapen their currencies.

 In the currency market, the dollar rallied against the euro. Late Thursday, the euro was trading at $1.5421 vs. $1.5548 on Wednesday. The buck was supported by better-than-expected retail sales, which boosted expectations for a Fed rate hike.

In the currency market, the dollar came off its intraday lows but still sank against the euro. Late Wednesday, the euro was trading at $1.5548 vs. $1.5452 on Tuesday.

In the currency market, the dollar was shoved down mercilessly against the euro. Late Friday, the euro was trading at $1.5777 vs. $1.5568 on Thursday.