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The U.S. Dollar is trading mixed overnight ahead of this morning’s Non-Farm Payrolls Report. Demand for risky assets is up overnight putting pressure on lower yielding currencies. Traders are looking for a loss of about 50,000 jobs. This guess is higher than last month’s actual loss of 20,000 jobs. The unemployment rate is expected to rise from 9.7% to 9.8%.

The U.S. Dollar is up against most major currencies as investors have shifted back toward risk aversion. Demand for lower risk is helping to boost the Japanese Yen while oversold conditions are helping the British Pound.

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.

The U.S. Dollar is expected to open higher this morning based on its strong overnight performance. Risk sentiment appears to be waning following early session strength. Commodity and equity linked currencies have reversed course after trading higher most of the overnight session.

The U.S. Dollar is trading mixed overnight. The focus this morning will be on both risk and economic data. This could create volatile trading conditions as some currencies are poised to break recent bottoms while others are finding support.

The U.S. Dollar posted strong gains against all major currencies as concerns about Greece’s ability to stick to its new strict budget flared up once again. In addition, a fresh wave of selling pressure hit the Euro after Moody’s Investor Service downgraded ratings on about 4 billion Euros of Greek bank hybrid securities. Both events encouraged investors to seek safety in the U.S. Dollar.

The U.S. Dollar is gaining back a little of yesterday’s loss in light, overnight trading. Volume continues to be down because of the week-long Chinese holiday celebration. Investors seem a little reluctant to take on risk ahead of today’s U.S. economic reports. Early in the session, traders will be focusing on U.S. Housing Starts and Industrial Production Reports.

Confidence that the Greek budget deficit problem may be improving helped to drive up demand for risky assets. This helped to boost U.S. stock indices. Traders were also becoming more confident about improvements in future corporate earnings because of the recent improvements in the economy.

The U.S. Dollar soared early Friday following a surprise 50 basis point hike in China’s bank reserve rate. Additional strength was provided by a better than expected U.S. Retail Report. The Dollar pared some of its gains after the University of Michigan Survey fell unexpectedly. Forex market trading has been erratic ahead of the week long Chinese holiday and the extended U.S. weekend.

The EUR USD is trading flat to lower this morning as traders await details on the Greece rescue plan. Traders seem a little more confident this morning now that a pact has been reached. This is helping to stabilize the Euro and keep it from breaking further. Once the details of the actual decision are released, this market should rally as fresh buying and short-covering should drive it higher.

Stock Indices tried to mount a rally early in the trading session, but failed to hold on to gains by the end of the day. The markets were trying to follow-through to the upside early in the session on the heels of stronger markets in Europe. Buyers were reluctant to chase the indices higher after news surfaced that the resolution of the Greek debt problems would be delayed for a day or two.

The U.S. Dollar is under pressure overnight as traders are liquidating long positions on the prospect of that a deal to rescue Greece from its sovereign debt problem is being worked out in Brussels. Speculation is rising that some kind of “bailout” package is being created which would help shore up the Greek budget and help restore confidence in the Euro Region.

The EUR USD closed sharply lower, pressured by concerns that despite the proposal of a new budget plan, Greece lacks the means to deal with its deficit issues on its own. Fears were also being raised that the fiscal problems in Greece are not isolated and may spread throughout the Euro Region should it default on its debt.

The EUR USD closed sharply lower, pressured by concerns that despite the proposal of a new budget plan, Greece lacks the means to deal with its deficit issues on its own. Fears were also being raised that the fiscal problems in Greece are not isolated and may spread throughout the Euro Region should it default on its debt.

U.S. equity markets rallied late in the session to close above key retracement points as traders set aside their recent worries and returned from the sidelines. The markets opened firm then surged to the upside following a better than expected U.S. manufacturing report. Good news from the consumer side also helped to support the rally.