The euro is at somewhat of an impasse. It remains in a fairly pronounced medium-term downtrend against the US dollar in the context of many years of strength.

Will the US dollar see further gains or a pullback?

Indecisive financial markets made price action especially hard to predict and kept the euro in a choppy range until the US Federal Reserve surprised markets and raised borrowing costs for banks on Thursday.

The US dollar finished the week almost exactly where it began, confounding traders with volatile short-term moves yet remaining nearly unchanged.

Greece is in special danger not only due to the sheer size of the fiscal deficit as a percentage of GDP, but any political efforts to institute cuts in spending and rein in the deficit have been met with fierce popular opposition.

Current market conditions make it extremely difficult to predict price action a day ahead and much less a week in advance.

All eyes will be on be on Tuesday’s UK Fourth Quarter Gross Domestic Product growth rate numbers.

The US dollar and many key asset classes have been stuck in choppy trading ranges, and the lack of sustained direction makes currency forecasts especially difficult.

The euro's relatively narrow trading range against the US dollar suggests that markets have reached an impasse.

The following days will see the release of potentially significant Pending Home Sales and ADP Employment Change reports.