As foretold on Monday, U.S. equity indices finished flat for the week. Although there were some sizeable swings triggered by news stories and speculation, for the most part, investors were not willing to take a position in front of next week’s Federal Open Market Committee Meeting.

The scenario for next week is simple in my opinion. Maximum liquidity is bullish.

The dollar dropped to a 15-year low against the yen and the weakest in eight months against the euro amid growing expectations the Federal Reserve will expand credit easing to sustain the U.S. recovery.

One debate that will go on this week centers on the Fed. One question traders are asking, “Is the Fed out of bullets?” All signs point out that the government’s stimulus plans as well as the Fed’s activity have done nothing to stimulate the economy. The housing market is bad despite mortgage rates below 5%. Unemployment is high and expected to rise.

The U.S. Dollar finished the day down against most major currencies with the exception of the Japanese Yen. Low volume ahead of Friday’s U.S. Employment report may have contributed to the weakness in the Dollar as traders threw their support into the higher-risk, commodity-linked currencies after the thinly traded equity markets posted strong gains.