European session: the euro fell after LTRO

The euro weakened  after the European Central Bank awarded a second round of three- year loans to banks, increasing the supply of the currency and boosting higher-yielding assets.

The common currency declined  as the ECB said it will lend financial institutions 529.5 billion euros ($713 billion) for three years, surpassing the 470 billion euros forecast by economists.

The Australian and New Zealand dollars extended gains after the ECB announcement on speculation part of the cash will be spent on higher-yielding assets.

Focus on testifies  of Federal Reserve Chairman Ben S. Bernanke in Congress today after saying last month that policy makers are keeping open the option to boost bond purchases.

Bernanke said last month the central bank is considering buying more bonds after policy makers extended their pledge to keep the benchmark interest rate at “exceptionally low levels” at least through late 2014. The Fed has engaged in two rounds of asset purchases, totaling $2.3 trillion in so-called quantitative easing.

EUR/USD: the pair fell in $1.3440 area, showed low in $1,3420 area.

GBP/USD: the pair showed session high at $1,5957, then receded in $1,5930 area.

USD/JPY: the pair was limited Y80.20-Y80.70.

At 1430GMT, Dallas Fed President Richard Fisher speaks to the Bolsa Mexicana on the "U.S. Economic Overview". At 1445GMT, The Chicago PMI is forecast to rise to a reading of 61.0 in February from the 60.2 reading in January.