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The dollar is marginally lower in early New York trade, which is likely a disappointment to anyone hoping for follow-through to Tuesday’s sharp deterioration in equity prices. The double-coincidence of weaker business and consumer confidence measures in Germany and the United States was enough to pull the rug from beneath…

BOJ’s Deputy Governor Yamaguchi made the following comments to reporters in Kagoshima:

• Japan’s fiscal situation is very severe.
• BOJ is always ready to take necessary action.
• Fiscal discipline and balance are key for stable yields.
• Investors are always watching gov’t fiscal stance.
• The markets view of Japan’s finances is that they are stable.
• The market has absorbed Japan’s bonds smoothly.
• JGB long-term rates have been stable, low levels.
• Pace of price decline easing has been a bit slow.
• Price movements are in line with BOJ forecasts.

The euro was slightly firmer as market participants were cautious ahead of the highly anticipated Bernanke testimony before the House Financial Services Committee today at 10am in New York. Traders are looking for assurance that the Fed has not yet embarked on a monetary tightening policy, and for clues to…

Aussie reversed recently after the 0.9070 top was reached. Prices traded sharply lower after very poor Consumer Confidence numbers from the U.S. sent global risk markets lower. The pair dropped almost 200 pips, in an impulsive structure. We could see another decline in the near-term towards the 0.8780, if market…

The pair saw its strongest declines since tumbling off its recent high the 92.13 level, its Feb 19?10 high to close lower at 90.15 on Tuesday. Our downside target, the 89.69 level, its Feb 16?10 low highlighted in our Tuesday analysis though not yet met continues to be targeted as…

With a reversal of its intra day gains and subsequent collapse from the 1.3593 level seen on Tuesday, threats of further losses is now envisaged towards the 1.3442 level, its 2010 low printed on Feb 18?10 though currently seen hesitating. A violation of that level will turn focus to its…

Today?s highlight will be Fed Chairman Bernanke semi-annual testimony (Q&A portion) before the House Panel. We believe he will stick the Jan FOMC minutes and sound cautiously optimistic on inflation and growth. In addition, his testimony will focus on the exit strategy through reiteration of comments he made back on…

The Cable hasn’t moved much during the day. It has continued to range between 1.5475 and 1.5413 during the day. A rise beyond 1.5500 could lead to a further upside targeting 1.5554 which is the upper end of the range mentioned in the morning. There are, however, lesser chances of…

* Times listed are GMT