The Dollar rate today is set to be highly determined by the publication of the U.S. Trade Balance at 13:30 GMT. Other U.S. data will also play a pivotal role in the forex market today, such as the Import Prices at 13:30 GMT and the Prelim UoM Consumer Sentiment at 14:55 GMT. It's also recommended that you follow the EUR Flash GDP results at 10:00 GMT. All the data mentioned will help determine the outcome of the USD and EUR's man crosses later today.

Economic News

The Dollar broke its recent trend yesterday, as the greenback strengthened against the EUR. Calls by Pacific nations for the Dollar to appreciate and comments by Treasury Secretary Timothy Geithner helped send the Dollar significantly higher. Geithner remarked that the federal government may require less borrowing than was initially anticipated to help alleviate the financial system. Also comments coming from the Asia-Pacific Economic Cooperation group were Dollar positive.

The EUR/USD rate fell sharply to its lowest level in a week, trading as low as 1.4821. The last time the pair was at this level was the previous week when the U.S. released the Non-Farm Payrolls. The pair ended Thursday's trading down at 1.4859, from an opening price of 1.4989. The pair was down 0.8% for the day.

Today traders will look at the key U.S. Trade Balance numbers which are set to be released at 13:30 GMT. The data measures the difference in value between imported and exported goods and services for the previous month. This data is directly used in the valuing of currencies. The recent weakness of the Dollar may help reduce the value of the trade balance. If the outcome is less than the expected -$31.8B, we may see the EUR/USD continue its fall below the 1.4750 level.

Trading of the EUR/USD continues to track the level of risk in the market. As traders feel the opportunity to trade more on risk, the EUR/USD rate begins to rise. The opposite of this theory sides with a decrease of risk taking during the trading day. Traders pile into the Dollar as financial uncertainty creeps in and risk taking evaporates. This is also seen in the stock market. As the assumption grows of a recovering global economy, stocks are sent higher. When financial data fails to satisfy investor's expectations, the stock market falls. Yesterday the Dow Jones Industrial Average was down 0.91%.

The EUR was influenced very little yesterday after industrial production in the European-Zone rose 0.3% for the month of September. The forecast for the economic indicator was expected to rise by 0.5%. Despite the negative outcome, the EUR/USD reacted mostly from negative equity markets.