Bernanke spoke in London yesterday and indicated that he doesn't believe the stimulus package in the States will completely resurrect the volatile currency, and would like to see further government aid to banks.
Looking ahead December Retail Sales are expected to come in at -1.2% against -1.8% previously. Also today Fed's Stern gives a press conference to indicate how the Fed sees the current US economy. His views may increase volatility in the Dollar.
The Euro traded on a downward trend for most of the day breaking through the 1.33 level due to unwillingness in the market to buy into the currency before tomorrow's interest rate cuts. ECB President Trichet spoke yesterday but didn't touch upon the rate cuts.
German GDP came in this morning at 1.3 compared to 2.5 previously. Euro zone Industrial Production is also forecast at a loss.
Sterling fell past the 1.45 supports as appetite for the pound diminished. GBP Trade deficit grew to a record -8.33 BN in November, with sterling reaching highs of 1.46816 and a low of 1.4470 before closing the day at 1.4520.
Breaking news this morning was Peter Mandelson speaking about a new plan to guarantee up to £20BN of loans to small to medium sized businesses.