The dollar hovered near its records low during the US session as unexpectedly data on durable goods fell the most in five months. The report added to fears of a US economic slowdown at a time when energy prices soared pushing prices higher, leaving the Feds with the dilemma whether the growth of inflation is the greater problem. However, the report shifted more towards a further expected cut in rates.

The euro remained above the $1.50 level till this hour on fears that the US economy may be flirting with stagflation that is a slowdown in growth accompanied by high inflation. The euro's strength is seen contributing to pressure on European stocks and also not to mention, the stronger currency makes the exports more expensive in the eyes of foreign buyers.

During early deals today, the British pound strengthened against the US dollar on the back of a weak dollar however declined against other majors. News on UK GDP expanded further gains against the US dollar pushing the pair to the upside to reacher back to $1.99s after reaching a low of 1.9830.

Meanwhile, the dollar extended its early losses versus the yen after the release of the durable reports showing that the orders for goods fell more than what analysts expected mounting evidence the US is in a recession. As for the USD/JPY pair, market shows that it is continuing to head towards the downside to fetch at this hour a low of 105.99 after recording a high of 107.38.

Dear Reader, in a few Mr. Bernanke will comment on the outlook of the US economy which will give us more insight to what the economy is going through.