The U.S. Dollar is trading lower at the mid-session as tensions eased regarding the fiscal problems in Greece.

The U.S. Dollar had a volatile trade overnight with a slight bias to the downside. Profit-taking was highlighted last night as traders turned a little positive that a solution was going to be reached regarding the escalating deficit issue in Greece.

U.S. equity markets mounted a strong recovery following the news that the unemployment rate dropped unexpectedly. Although the number of jobs loss was greater than forecast, the improvement in the jobless rate helped confirm that the economy is on the road to recovery. Fear over sovereign debt issues in the Euro Region most likely limited gains.

The trading week ended with traders still fearing a widening and deepening debt situation in the Euro Region. Optimistic traders are looking for some solution to be reached by either a “pseudo-bailout” by the European Central Bank or European Union. Legally, the ECB or EU cannot offer an outright bailout package so they may have to figure out a way to get around this restriction.

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.