The EUR/USD ended last week with strong gains as the euro rallied following the announced plan to contain the debt crisis and the dollar slumped with the improved risk appetite.
The sentiment is starting to improve with the incoming fundamentals easing recession woes and the plan announced, yet the uncertainty remains high and investors fear still the chapter after the relief rally, especially as they still do not know how and when will those new measures be activated, and especially the leveraged EFSF.
This week is full of major releases with the rate decision from both the FOMC and the ECB alongside the G20 summit from Cannes and the infamous jobs report and according a volatile start for the week might be seen.
The euro zone will starts the week at 10:00 GMT with the consumer price index annual estimate for October, which is expected to decline to 2.8% from 3.0%.
The euro zone will also release the unemployment rate at 10:00 GMT, with expectations that unemployment lingered at 10% in September.
The United States will join the session with the Chicago purchasing manager at 13:45 GMT, with expectations that the indicator could have retreated to 59.0 from 60.4 in October.
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