– From “The Brewer Blog”, by Brewer Investment Group –

The U.S. Dollar traded mixed in a tight and narrow range. The trade weighted Dollar Index finished slightly lower after confirming last Friday’s closing price reversal top.

The lack of major U.S. economic reports on Monday helped hold the Forex markets in a tight range as investors awaited testimony later in the week from Fed Chairman Bernanke. His comments should move the markets especially if they come after a few days of range bound, directionless trading. His testimony before the House Financial Services Committee is expected to be about employment growth prospects and whether fiscal stimulus is needed.

Traders will be looking for Bernanke to give them clues about the timing of future U.S. interest rate hikes. In addition, he may be asked to explain why he hiked the discount rate last week.

The Euro finished lower as investor confidence evaporated following a failure by the European Union to reach an agreement with Greece regarding its fiscal responsibility. Depending which side you talk to, the EU and Greece are either very close or far apart.

You must be logged in to view the rest of this article. If you do not have an Investrend Weblogs account, it is free to register.