Markets did not perceive the Bernanke testimony much and rather took his stance lightly especially when he referred to inflation expectations and not wanting inflation-fighting credibility to be eroded; he stated for the Senate Banking Committee that the feds acted to promote growth and mitigate risks, now, its job is to assess whether the stance of monetary policy is properly calibrated, whether the policy actions taken thus far are having their intended effects.

The fed still stance to act in a firm and timely manner if downside risks appreciated than projected especially in the housing and labor market, and if credit conditions tightened further.

The 15 nation start was the most to react, as he was perceived by appreciating downside risks to growth and that the fed will ease further and lower rates; the euro inclined to around 1.4620s where pre-release it traded near 1.4590s. The euro in the American session has breached its earlier highs setting a high of 1.4638 at 1:00 GMT.

Sterling on the other hand lost its strong upside momentum that it acquired in the previous sessions consolidating among 1.9670s till 1.9720s and currently trades near 1.97s as the highest set for the day was at 1.9727 leaving the lowest as set in the early Asian session.

The yen is still losing ground as the USD/JPY pair set the high at 108.59; the yen also weakened against the euro consolidating now at higher levels above 158.20s as the highest reached was of 158.47 while against the pound it is holding strong higher among 213s.