After green opening of the US session the US indexes have retreated back diving in the red territory following dovish assessment of the labor market performance by the Fed's chief in his semi annual testimony in front of the Senate Banking Committee.

The Fed's chief had clarified that the Fed's is ready to take further easing steps to support the economic activity with context of the price stability as the progress in reducing the unemployment is likely to be “frustratingly slow” as he said but he has not delivered again any clear idea about such steps that could be taken by the Fed in the future by God's will to stimulate the growth which is looking negatively impacted by losing confidence and expected to growth by a rate below 2% in the second quarter of this year as he expected because of the debt growth and the slow global economic growth which has been revised down for this year recently by the IMF to be 3.9% from 4.1% in its previous estimation.

The risk aversion direction could contain the investors again pushing the greenback up across the broad in the beginning of the US session while the sentiment towards the single currency remains dovish with no major change of the EU Fin Minister Stance of going forward for bailing out Spain by euros100b will be directed basically for recapitalizing its banking sector while the political stance is still not clear about the ESM and the use of its funds in direct buying of bond waiting tomorrow initially for the German parliament voting on the ESM which was supposed to be started in the beginning of this month while there could be voting against it as this parliament always criticizes the direct bond buying by the ECB which will share as a supervisor and agent in the ESM

The market sentiment turned to be dovish in the beginning of this week with growing concerns about the direct buying of bonds through the ESM and whether or not the size of buying will be enough for recapitalize the EU banking sectors.

While it seems that there are political criticism against this action which can be costly and not an effective in driving the confidence in solving the crisis with worries in the same time about the collaterals which will be under easier conditions and this is looking initially not welcomed from Netherlands and Finland as an intervention from the ECB by the ESM funds.

After brief standing over 1.25 versus the greenback the single currency managed to fall again with increasing doubts about the outcome of the EU 2 days summit in Brussels and its effectiveness in solve the EU debt crisis and raising again the market confidence while the EU bonds yields are still rising up hiking the borrowing costs in the EU indebted countries which are suffering in the same time from economic shrinking pressure because of the austerities measures which cap the governmental spending and hike the taxes.

By God's will, The single currency is waiting now for the EU summit which is expected to discuss using the EFSF funds for buying directly peripheral bonds of the indebted ailing governments inside the Euro zone and also citing new terms for reaching stronger EU banking and financial union which can open the way for issuance of the EU bond which is still refused by Germany.