The discount rate cut is really meaningless, although it sounds good.
The only way out for Japan is to see the yen weaken.
A half-point move by the Fed would push the euro down to new lows.
The Fed still has a tightening bias. It could go up by 50 basis points.
Long-term players are content to stay short the euro, and will sell into any rally attempts.
The euro is at a critical stage. It is trying to get back to 97 cents and then parity later this summer.
If investor confidence produces a stock market rally, the dollar could get a boost.
Judging by market rates, there is a 70 percent probability of a rate cut by March.
They really have not eased monetary policy, and fiscal policy looks to be an unattractive option due to concern over the deficit. Massive public works projects have created highways to nowhere and the cementing over of the bottoms of goldfish ponds.
