Support towards 17.7000 has become a significant barrier. Attempts to break back below 17.7000 failed again on
Friday after the USD bounced as speculation intensified on whether the Fed would cut by 25 or 50bp at next week’s
meeting. And it is a double-edged sword for investors. On the one hand, investors would like to see the Fed cutting
rates more aggressively to boost future prospects, but doing so would signal that the economy is perhaps in worse
shape than the data suggests. Instead, a 25bp cut is a more logical and sensible approach, allowing the Fed room
to act with bigger rate cuts should the data disappoint in the months ahead.