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US Dollar still a safe haven

Bernanke painted a very bleak picture whilst speaking to the senate indicating further economic stimulus is needed to help the economy.  Data out today ADP employment change seen at -565K vs -522K previously.

The Euro traded at a low of 1.2524 and a high of 1.2676 before closing at 1.2560.  USD tested the psychological level of 1.25 (0.8) and finally broke through during the night.  The downside is being tested due to uncertainty of the measures the ECB will take tomorrow regarding the rate cuts.

Trichet refrained from commenting on the forthcoming monetary policies as he is in his self-imposed black out period before the announcement.  Expected cut will be 50 base points bringing the institution's key policy instrument to the lowest level in its 10-year history. 

Purchasing Manager Index released today came in better than expected at 39.2 vs 38.9 previously.

GBP tested the downside of the range after reports emerged that the BOE is considering quantitive easing as early as this month.  Traded at a high of 1.4157, low of 1.3987 before closing at 1.4040 against the dollar.  Against the Euro traded with a high of 1.1111 and a high of 1.1184.

Nationwide consumer confidence released early this morning better than previous at 43 compared to 41, also today we see Purchasing Manager Index expected at 41.9 vs 42.5 previously.