Cautious Mood For The Pairs Today

FX pairs began the week in a cautious mood, as traders await Ben Bernanke's testimony to Congress on Wednesday. The insights of the Fed chairman are usually given much credence given his ability to move interest rates. Dollar bulls may also be hesitant to place large positions until Wednesday's Treasury inflow data. After learning that December's trade deficit was $65.7 billion (capping a record year), traders will want to see an inflow number safely above this level.