The dollar weakened against most of its major currency counterparts during the morning trading session on speculation Federal Reserve Chairman Ben Bernanke will continue to support stimulative policy. The Dollar is currently trading lower against the GBP by nearly 50 pips at 1.6305. It is also trading lower against the EUR and CHF, as investors remain wary of making big bets in favor of the Dollar these days.
Bernanke testifies to Congress on Tuesday and Wednesday. Analysts expect him to stick to his recent economic assessment that the recovery is strengthening, but it is not enough to bring about a significant improvement in the jobs market, suggesting the time is not ripe for U.S. rates to rise.
The other release today that is set to determine the levels for the USD and its most traded pairs is the Manufacturing PMI at 15:00 GMT. Better-than-expected results may help the Dollar recover some of early trading losses against some of its crosses such as the GBP. On the other hand, if the results turn out to be in line with forecasts, then the Dollar may record a fairly bearish session in today's trading.