With the exception of the Yen most major currencies are licking their wounds against the Dollar as risk aversion rears it’s ugly head again. The Loonie has also fallen sharply today but still remains below the downtrend in place since the 9th March 2009. This resistance comes in at 1.2385 currently. The market is split pretty much 50-50 with either a 25 basis point cut or a no change vote expected. I’m a fan of more pro-active than reactive Central Banks ( are you listening Monsieur Trichet) so I feel a further cut would be the right signal along with a move into the QE camp.