EUR/USD falls back in Asian trading

The dollar did not really fall after the Fed cut rates yesterday evening and the EUR/USD pushed a little further beyond the 1.08 handle. The high seen after the Fed rate cut was set at 1.0810 and that fell short of the high seen earlier in the day, at 1.0825. The Euro later closed in the US last night at 1.0805. The price action since that US close has been to the downside though and the Euro has dropped back to a session low today at 1.0773. It is close to that session low leading into the European opening right now. The one thing to note from the Fed policy decision, was the change in the Fed language, which gives them some flexibility to shift policy if inflation starts to pick up again next year, or perhaps even before. The rebound to the high at 1.0825 yesterday was noted as being correctional to the fall to 1.0683 and nothing has emerged since to detract from that observation. The EUR/USD is currently trading at 1.0778