Is it time for the dollar to step down!

The dollar today is trending lower and that is mainly supporting its major rivals to seize the opportunity and correct some of their endured losses. The dollar index is trading around 80.66 areas mid European session, down from opening levels at 80.92.

Greenback is pressured by the two-day testimonial from Fed Chairman Bernanke to Congress; expectations are for the Feds chairman to signal that the latest move on the discount rate does not signal a reversal in policy nor intended to raise borrowing costs; as the economy remains fragile and rates are warranted at their historic low.

That places the American economy back among its peers, which are struggling with the recovery, which is taking a beating, and obviously the disparities are seen among nations, yet the common denominator and the most negative pressure on all economies struggling to exodus the recession, is skyrocketing jobless!

Assessing the euro for instance, the German GDP figures today assured that the recovery took a beating in the past quarter, and came to a total standstill pressured by the decline in consumer spending and investments, which rather explains itself doesn't it!

The single European currency is battered by the pessimistic sentiment, from those weak growth figures, to the growing debt difficulties for euro nations; yet of today the better than expected industrial new orders eased the fears. Though still mainly the euro is taking advantage of the dollar for the time being and we will not confirm the change in the sentiment until solid proof is provided.

The EURUSD pair is currently trading around 1.3554 rising off its early recorded low at 1.3500 to set the high of 1.3572; the pair is targeting to touch the 1.3575 resistance and was close there from where it retreated again; failure to head above this level if the sentiment resumed to weaken with the prevailing red over equity markets the pair will likely reverse to the downside again targeting areas around 1.3485 areas.

As for sterling, it is for sure still weak and mainly exploiting the dollar's softness. King yesterday was very confident that rating agencies should not worry about the fiscal positioning of UK and though they will continue skeptic about the budget outlook, he is certain that the AAA rating is safe! And regarding economic conditions, King said the economy escaped the rerun of a Great Depression yet still not out of the woods.

Sterling opened today at 1.5419 setting the low of 1.5411 and the high of 1.5475 from where it couldn't continue higher to reverse to the downside once gain and currently trading around 1.5440 facing strong support at 1.5430.

As for the Japanese yen it also managed to extend the gains versus the dollar, especially amid uncertainty hovering the market. The pair managed to record the high of 90.35 and a low of 89.95.