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The U.S. Dollar finished higher versus most major currencies with the exception of the New Zealand Dollar. Fear that Greek fiscal problems may flare up once again sent investors scurrying out of the Euro and into relatively safer currencies. Nervous investors removed risk from the equation overnight and continued this trend throughout the day.

U.S. stock indices are trading flat overnight. Traders have largely ignored the weakness in the Euro over Greece concerns. This may mean that today’s menu of U.S. economic reports will have a bigger influence on stock prices.

On Tuesday, the Federal Reserve left its benchmark interest rate unchanged and reiterated that interest rates would remain low for “an extended period”. In its statement, it also mentioned that inflation remains subdued, and that the weak employment situation seems to have stabilized.

A drop in Asian equity markets is leading to spillover selling in the U.S. markets. The follow-through to the downside overnight appears to be a continuation of the sharp break from the high on Friday. Concerns over a credit rating cut in the U.K. and the lack of a bailout plan for Greece are two reasons for the selling pressure.

The Euro closed the week higher and in a position to continue the rally as financial tensions have eased enough in Greece to warrant the beginning of a short-covering rally. Technically, the main trend is up on the daily chart with 1.4009 a possible near-term target.

Retail Sales just came out bullish. Equity markets are soaring. Bonds are breaking. The Dollar is plunging. The market reads this report as good. The key will be to be able to separate the report from the trade. The question is will U.S. investors chase equity market higher or wait for a pullback? Overall, however, it looks like a strong report.

U.S. equity markets finished higher after treading water most of the day in sideways-to-lower trading action. Traders seemed to be waiting for a catalyst all day. Near the close equity markets mounted a strong surge to finish on their highs.

U.S. equity markets are trading firm overnight after yesterday’s surge to the upside. Buying pressure dried up late in the session, but no damage was done to the uptrend. Volatility is falling which is making traders appear complacent. This could be both good and bad. On the good side, it could mean traders are gaining confidence in the recovery which will send prices higher.

On Wednesday, the U.S. Dollar lost ground to every major currency except the New Zealand Dollar. Early selling pressure triggered a change in trend when this index took out the last main top at 80.14. In the process a new lower top was formed at 81.34. The charts are indicating a break to 77.86 is possible over the near-term.

The impending weaker Dollar helped to boost April Gold on Tuesday. The rally tested a major 50% price at $1136.75. Regaining this level will be a sign of strength and could trigger a further rally to $1158.50. The recent weakness in the British Pound and Euro has put gold at an all-time high in terms of these two currencies.

The EUR USD posted a closing price reversal bottom after positive comments from Greek officials encouraged weak shorts to lighten up their positions. After touching a new low for the year overnight, the EUR USD turned around as the lack of fresh selling pressure scared some of the weaker shorts out of the market.

Investor optimism over a resolution to the sovereign debt problem in Greece and improvements in the U.S. economy are helping to boost U.S. equity markets following a change in trend to the upside on Monday. Traders expect the trend to continue today as the charts indicate very little resistance to the upside.

U.S. stock indices are trading better this morning ahead of the U.S. session. Although they are off their highs, there seems to be enough demand for higher risk despite the strengthening Dollar and the falling Euro and British Pound.

Today was a relatively flat day for most commodities and stocks. The inability of the Dollar to pick a direction helped to pressure gold, crude oil and stock indices.

The way the March Treasury Notes and March Treasury Bonds traded, one would expect Bernanke say something later this week about future rate hikes. On Monday, Treasury futures finished lower in a slow trade.

U.S. stock indices are trading in a tight range overnight as investors await testimony before the House Financial Services Committee by Fed Chairman Bernanke. Expectations are for Bernanke to talk about the state of the employment situation as well as addressing whether more financial stimulus is required.