We are today celebrating a day of once every four years, yet seemingly we are not celebrating the new set high records just today, as the likelihood of further dollar weakness is upon us, and its shred to further lows is a high probability and not just a possibility.

The odds are now for an even deeper cut by the feds of 75 bp which in role is maintaining the strength of other majors against the greenback. Bernanke's second round testimony against the congress provided his growing hawkish stance as he discarded inflation at this stage, stating that stagflation was not an option, while stressing his fears regarding solvency of small banks to the extent of bankruptcies as the housing is still in its freefall and no near ground is yet in sight.

Our star remains the single currency, the euro, the continuation pursue of new records is undergoing with strong momentum, as the euro is heading to its fourth day of heavy gains. The euro's new set record high in the European session was of 1.5238 as the euro did not manage to breach the major resistance at 1.5240s where now the targets have extended after setting the 1.52s to now at 1.5370s; the euro declined from the major levels to now trade near 1.52s as with the lower than expected confidence data might have slightly aggravated the upside momentum, yet more important was headline inflation figures that came to confirmed he Eurostat flash estimate still at a 14-year high of 3.2% while falling unemployment is still strong indication of resilience in the economy prolonging any far sighted expectations of easing stance by the ECB.

The pound unfortunately is still week, yet targets remain set for the pound to once more leap into $2 mark; the pound reversed from its early European set high at 1.9921 after reported falls from Nationwide's house prices, to reach as low as 1.8910s which offers good demand on the pair and the good reading from mortgage approvals in January which is considered a gauge of future activity supported the pound against the dollar, especially that the point in focus in the two nations remains the housing sector where the US's is falling with not security line, the UK housing market is declining yet not plummeting. The pound is now trading near 1.9830s attempting to incline to its early Asian trading levels near 1.9880s.

Japan has supported its currency even further against the weakening dollar, as consumer prices gained 0.8%; the USD/JPY pair since the early morning has been riding the downside wave as it did not manage to breach 105 resistance levels to take the dollar down to its nearly three-year lows against the yen setting the lowest at 104.15 as the first seen target now is at 103.80s as the downside potential is extended at the short-term until the yen reaches good long positions were then it will take the yen on a long bullish wave on the medium term.

Against majors seemingly other opportunities of gains and insecure outlook with those drastic new levels, investors are trimming their bets on crosses and yen funded investments, as I said the chance for the yen to gain further will lead it to reach a strong medium to long term strong longs and for that trimming is seen on the short term for stronger gains ahead. The yen gained against the Euro to take the pair as low as 158.38 while against sterling the yen has been gaining well taking the pair this week from its highest at 213.48 to today's recorded low at 206.47.