The main item of fundamental news on the economic calendar for today, for the euro to dollar currency pair, is ofcourse the ECB interest rate decision, which is due for release shortly. Of more interest perhaps, since the market has already assumed that interest rates in Europe will remain on hold at 1%, will be the ECB statement which generally follows the announcement 45 minutes later. In particular the currency markets will be looking for further clarification on the quantitative easing already in place, and any additional measures the bank intends to take to combat the current economic recession. It is during this session and the question and answer section that follows that the euro dollar is likely to be most volatile, as any unscripted answers could provide clues as to the futures policy for the bank moving forward.The only other item of fundamental news in Europe were the Retail Sales figures, which came in better than expected at 0.2% against a forecast of 0.0%, so another glimmer of hope on the economic horizon.

The news in the US this afternoon centres on the weekly unemployment claims which are forecast to show that a further 620,000 filed for unemployment benefits this week, a truly awful figure but one which the markets have come to expect, particularly as the national unemployment rate is expected to top 9% in May. The previous weeks number was 623,000 so little changed week on week. Following this release, Fed Chairman Ben Bernanke is speaking once again where he is due to deliver the opening remarks at the Federal Reserve Conference on Financial Markets and Monetary Policy, in Washington. Once again the markets will wait with interest for any signs and signals from his speech. Finally, and later in the afternoon we have the Natural Gas storage data which is expected to show an increase from 106B to 116B of stored gas. Whilst this data is released in the US, the data generally has more of an effect on the Canadian dollar, due to Canada’s preeminence in the energy sector.

You can keep up to date with all the latest fundamental news on the economic calendar, latest currency news and live currency charts by simply following the links.  I have also included details on an excellent ECN broker.