The market started the week on a mixed tone following last week's bomb drop from the US economy, where the US added much fewer jobs than anticipated while unemployment unexpectedly leaped!

Still, the effect did not quite sink in with the dollar rebound today to compensate for most of the losses on what seems to be a remarkable surprising reaction for now! Basically, Bernanke's comments on the weekend expressing the support and tendency to expand the QE2 once again into phase three and his downplay of the likelihood for recession was the power card in a volatile market.

Investors see short term support for greenback on the back of the economy's support, especially as the tension is once again fueled by the European continent amid the lack of major fundamentals today. EU finance ministers are set to meet in Brussels today and discuss the prospects for expanding the May-announced €750 billion stability fund in hopes to ease market jitters over the likelihood for the spreading crisis to not be contained by the remaining funds.

The dollar is the main bull today as the dollar index recovered most of Friday's losses where the index traded at the highest of 79.93 today and currently back towards 79.80 areas rising off early lows at 79.15.

With the Brussels meeting, the jitters are once again agonizing Europe, especially after last week's move by the ECB to extend their emergency liquidity measures to counter the fears, where more heavy moves by policy markets could backfire any second and signal to the market the audacity of the situation and trigger a massive broad selloff forcing Portugal first to indeed ask for a bailout!

The euro today traded softer and declined from opening highs recorded at 1.3422 to set the low of 1.348 and currently hovers around 1.3270. The outcome of the meeting will surely have the capability to define the euro's course for the coming period, where today a closing below 1.32 areas will extend the bearishness while if the bullishness to remain this week we need to see today's closing at least above 1.3265.

As for sterling, the royal currency also surrendered to the dollar's strength erasing much of Friday's gains. The pair is currently hovering around 1.5670, recording so far the high of 1.5773 in the early session, and the low of 1.5653 so far. Still, with the BoE decision awaited later this week, the volatility is likely to remain high, and we need today's closing at least above 1.5810 to confirm the bullishness is to continue and count the bearishness seen today as a normal retracement to the gains seen the past couple of days.