Despite a lack of fundamental news on the economic calendar pertinent to the euro to dollar pair the leak of the draft by the EU that it would not be adding further to the stimulus packages already may inject some volatility into an already febrile market.   Angela Merkel’s view that Europe should take a “wait and see” approach before throwing everything, including the kitchen sink at the credit problems seems to have won the day.

There are only 3 significant items of news today for the euro to dollar starting with the German PPI figures which have already been announced, coming in worse than expected at 0.5% against a forecast of -0.2%.  This is an important leading indicator of consumer inflation and indicates the change in the price of goods sold by manufacturers.  Next we have industrial production figures due out shortly which again is seen as a leading indicator and in this case measures the change in the total inflation which is adjusted for the output from manufacturers, mining activities and utilities.  This tends to have a relatively muted effect as Germany and France release their figures independently and since they account for over 50% of the euro economy tend to carry more weight.  The forecast is for -3.8% against a previous of -2.6%.

Finally, this afternoon, Ben Bernanke (yes it’s him again) is due to deliver a speech with the snappy title: “The Financial Crisis and Community Banking”.   Later today EU’s Weber is also expected to speak about the financial crisis in Berlin and Trichet will also be adding his views on the financial crisis and commodity prices in Mexico.

Check out the latest daily video on the latest currency news which explains support and resistance for all the majors and incorporates Fibonacci and my own favourite, Ichimoku cloud.