Currency Updates: More Dollar Weakness

Mr. Bernanke assured the congress that the Feds stand ready to help moderate growth even if inflation is seen as rising, which spread fears among investors that the bank will cut rates and ignore inflation which might lead the U.S economy into stagflation, sending the dollar to record lows against majors and driving commodities especially gold and oil to record highs.

After breaching the $1.50 barrier for the first time ever yesterday the Euro set its highest at 1.5143, the Euro managed to stay above the $1.51 levels since early this morning to set a high for the day at 1.5125 yet started declining afterwards to set a low of 1.5086 so far, the target is now set at the $1.52 levels since no major resistance levels are standing on its way to the upside.

The Pound on the other hand was not supported by the same strong momentum the Euro had, managing only to incline to the $1.99 levels yesterday but could not hold above it for too long as it dropped back to the $1.97 this morning. The Pound recorded a high of 1.9847 and dropped to set a low of 1.9777.

While against the Yen, the dollar seems to have settled among the 106 levels, the USD/JPY pair remains trading within very narrow ranges since early this morning, recording a high of 106.50 and a low of 106.18.

As for other majors against the Yen, the Euro managed to settle within the 160s level, while the Pound dropped against the Yen back to the 210 levels.

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