Another quiet start to the trading week for the euro to dollar, with very little in the way of significant fundamental news on the economic calendar for today, either in Europe or in the US. Indeed in Europe there is no news whatsoever, and the only item which may move the euro to dollar pair later in the trading session is the release of the CB Leading Index, which is forecast at 0.8% against a previous of 0.6%. The index is a composite of ten other economic indicators and was designed to predict the direction of the economy. However it tends to have a muted impact on the currency markets as most of the indicators used in the calculation have already been released, and therefore the indicator generally provides little in the way of any surprises or shocks to the forex markets. The index covers various aspects of economic growth including  employment, production, new orders, consumer confidence, housing, stock market prices, money supply, and interest rate spreads, and is generally considered to be a leading indicator of the economy.

The highlight of this week for the euro to dollar pair will ofcourse be the FOMC rate decision and statement which is due on Wednesday, with interest rates forecast to remain on hold at 0.25%. However it will be the associated statement which will provide more of a clue to future policy from the FED, and of increasing importance will be their attitude and associated rhetoric towards the US dollar which continues to weaken on a daily basis. With many analysts now suggesting that the US dollar is over sold and due for a correction, the statement on Wednesday could provide the trigger for a sharp reversal, with consequent volatility in the euro to dollar pair as a result.

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.