LONDON (AFX) - The dollar was enjoying a brief respite in midday trade gaining support from signs of a tentative rebound in the US equities futures market after a robust earnings report from Ford, dealers said. "Ford's earnings were better than expected, and futures are indicating a stronger start for US equities," Kamal Sharma, currency analyst at Commerzbank, said. Earlier Citigroup Inc kicked off today's flurry of earnings reports from US heavyweights, calming investors fears by beating Wall Street forecasts, although only narrowly. Market players will be closely monitoring US earnings and equity market moves throughout the day, as euro-dollar moves remain highly correlated to these factors. Later, all eyes will turn to Federal Reserve chairman Alan Greenspan, who is due to testify to the House of Representatives at 3.00 pm. Yesterday, in his testimony before the senate, Greenspan failed to halt the slide in US equities, although his reassuring words offered the dollar some temporary relief. Sharma said Fed chairman's question and answer session could move the dollar. "He [Greenspan] mentioned the dollar fleetingly yesterday...further comments could rock the market," Sharma said. Sharma said euro-dollar is likely to languish around these levels for a few days, in a period of consolidation, before breaking through 1.02. However, further US equity falls could speed up the process, he said. "There's still a bias for further dollar weakness," he added. The dollar's temporary respite is taking the heat off the Bank of Japan, as the dollar's slide has been exacerbating the yen's strength and increasing expectations that the Bank of Japan would intervene again to weaken it. "There's been just a hint of co-ordinated intervention," Sharma said, noting that the Japanese authorities want the market to be aware that it will act at any time of day via other agencies if necessary. Earlier in Tokyo state minister for economic and fiscal policy Heizo Takenaka voiced concern about the yen's ascent. "The forex market is showing a very critical movement. I would like to ask the BoJ to ease its monetary policy further at today's meeting," he said. Sterling was under pressure against the dollar, as the US unit clawed back some lost ground. "Cable's coming under a lot of pressure," Sharma said. Today's labour market report registered a unexpected rise in the claimant count, despite unemployment remains at historically low levels in the UK However, it had little impact on sterling, largely eclipsed by yesterday's record low in underlying inflation. The Monetary Policy Committee's latest minutes reveal that stock market weakness has started to feature as a major factor for keeping interest rates unchanged.