Same story different scenarios now in financial markets; the plot is basically concerning the extent of damage on industrialized economies from recent turbulence as credit woes still roam the atmosphere. The leading role is indubitably for greenback yet the alteration now is for all the supporting crew as developments on their grounds is fogging the view.

Fed Chairman Bernanke yesterday testified before the Joint Economic Committee as he gave the exact speech like the week before which added nothing new to financial markets; urging the committee to formulate a short-term fiscal stimulus package was his confirmation to a broadband economic slowdown in the world's largest economy. Nevertheless with nothing changed the dollar is still fragile camouflaging with other majors' weakness as they struggle with their own version to the American slowdown as fears are now concentrated on GLOBAL GROWTH!

A week ago the 15 nations' currency was supported by a hawkish stand from the ECB as was expressed by Mr. Trichet in the post decision press conference, as with the deteriorating economic outlook in the US and the substantial easing the Fed hinted for markets were preparing to see a 50 bp cut in the US late this month and for that the return on the euro would outmatch its American counterpart for the first time in almost three years. The expectations to see the $1.50 were once more the sentiment nevertheless with sluggish December readings and comments from the ECB council members markets see the 4.0% is the most we are to see now in the Euro area. Banks on the other hand today added to the ECB's misery as banks say liquidity is to be of a problem in the first quarter this year as they will limit given loans individuals and business making the possibility of a hike as perceived from Trichet's words rather IMPOSSIBLE!

The euro is trading within the downside channel mapping the fourth day of consecutive decline. The euro has ranged within 1.4715s till 1.46s the past two days; the currency is still held up with the strong support levels around 1.4620s which as well resemble the 50% retracement to the wave the started from 1.4309 till the peak on Tuesday of 1.4920 breaching that level may further expand the euro's downside wave to complete 61.8% of the Fibonacci levels around 1.4545s. Throughout today's trading the euro recorded a low of 1.4609 to reverse to the upside then to trade now around $1.4630s the highest set remained intact since the opening hour at 1.4661.

Sterling pound was hammered today by weaker than expected retail sales the weakest in 11 months, which powered the royal currency to reverse back the upside rally it lead after BoE's Deputy Governor John Gieve's comments about elevated inflationary pressures in the pipeline which gave the impression the bank has limited room to maneuver slowing economy. Yet evidently the 25 basis points cut in February is being locked in the market now; the pound again weakened the bearish wave as attempting to breach the strong level at 1.9560s which is now holding the pair up which if breached the pair's headway will extend the downside pattern. The pound recorded a high of 1.9726 and setting its low at 1.9562.

The yen is weakening against the dollar after sluggish growth readings from Japan and the BoJ expects the economy to moderately expand; we still await some fundamentals from the US session where they are not much moving indicators yet might spur the market to move as squaring positions and profit takings take place ahead of the weekend. The pair set the low in early Asian trading today at 106.33 to then start heading to the upside to as high as 107.57 and now trading around those levels.