With many major banks applying to return TARP funds, the flight of safety to the dollar has come to a rapid end at the beginning of the week.  Goldman, JPMorgan, and Morgan Stanley have all applied to return what may amount to over $45 billion in government funds.

With the Australian dollar at its strongest level since October, and the Euro rallying against the dollar in early trading today, it seems the majority of traders are acting on market sentiment rather than the economic fundamentals. 

With unemployment claims being released Thursday, and Fed Chairman Bernanke Friday, continued volatility through the close on Friday seems likely.