The US dollar gained on Monday against its major rivals as investors shifted their focus towards the safe haven status of the greenback in reaction of reduced China’s economic growth outlook and meeting of finance ministers from European Countries.

The dollar index DXY which measures the US dollar’s performance versus the basket for six major counterparts advanced to 79.595 on Monday as compared to 79.350 on Friday’s North American trading session. The euro fell to 1.2973 against the US dollar on Monday as compared to 1.3031 on Friday’s late trading hours. If we look at the performance of the euro, the single currency climbed 1.3 percent in last week against the US dollar.

Forex pundits were of the opinion that the euro had a strong last week and correction was overdue. Investors have realized profits ahead of next event which probably could be Spain going for additional rescue funds. Traders were also waiting for Greece’s report from its creditors showing progress of the country in meeting its bailout requirements. In Monday’s meeting of Finance managers, bailout fund of 500 billion euro equivalent to $649.8 billion was approved for European Stability Mechanism. However, investors were still mixed whether Spain will go for a bailout. Analysts foresee that Spain to avail rescue funds is a move which is inevitable.  Germany on the other hand supports Spanish government for not taking the assistance program. German Finance Minister Wolfgang Schauble commented, “The Spanish don’t need an assistance program. That is what the government says over and over again, and we should just trust the Spanish government.”

Among other currencies, the British Pound slipped to 1.6031 against the US dollar on Monday as compared to 1.6141 on Friday. Against the Japanese yen the US dollar traded at 78.32 as compared to 78.64 while the Australian dollar stood at 1.0177 versus the greenback on Monday as compared to 1.0176 on Friday’s session.

Major economic events that could affect the trading of the pair EUR/USD for the week ending April 27th are as under:

On Monday, April 23^rd, France and Germany reported their purchasing manager index for services and manufacturing sectors. Euro zone reported its separate data on purchasing managers’ index for services and manufacturing sectors. The single currency region also released its government debt to GDP ratio.

Today on Tuesday, in euro zone, data by Eurostat on industrial orders was published while European Central Bank’s official Weidmann addressed at an event in New York. In United States, Case Shiller Home Prices Index was released along with data on consumer confidence, new home sales and manufacturing index by Richmond’s Federal Reserve. In Canada data on retail sales was published.

On Wednesday, April 25^th, Germany will report its data on import price index in the euro zone. United States is expected to release several economic indicators which include data on MBA mortgage applications, data on durable goods orders and inventories data for crude oil, gasoline and distillates by US Department of Energy. Moreover, FOMC will release is projections on US economy and Federal Funds rate while US Federal Reserve’s Chairman Ben Bernanke will hold a press conference.

On Thursday, April 26^th, euro zone will report its data on services confidence, industrial confidence consumer confidence, economic confidence and business climate indicator. Germany is expected to release its figure on consumer price index. In United States, several reports will be published including weekly data on initial jobless claims, continuing claims, pending home sales, Chicago Federal Reserve’s Nat activity index, Kansas City Federal Reserve’s manufacturing activity and data on natural gas supplies by Energy Information Administration.

On Friday, April 27^th, data on Gfk consumer confidence survey for Germany will published in the euro zone. United States will report its data on employment cost index, gross domestic product, personal consumption expenditure and University of Michigan’s confidence data.

Significant economic events which could affect the trading of the pair EUR/USD for the week ending April 20th are as under:

On Monday, April 16^th, in euro zone, data on Italian trade balance and government debt was released while the single currency region published its separate figures on trade balance. In United States, data on retail sales, long term TIC flows, business inventories and manufacturing was published. Moreover, US Federal Reserve’s official Bullard addressed at a public event.

Today on Tuesday, data on Germany’s economic sentiment survey by ZEW was published while the single currency region released its separate survey reports on economic sentiment and current situation along with data on consumer price index. In Spain, auction for 12 months and 18 months Treasury bills also took place. In United States, data on housing starts, building permits, manufacturing production, industrial production and capacity utilization was reported.

On Wednesday, April 18^th, euro zone will report its official figure on the region’s current account and data on construction output. In United States, data on mortgage applications and inventories data on crude oil, gasoline and distillates will be reported by US Department of Energy.

On Thursday, April 19^th, Italy will report its data on industrial sales and industrial orders in euro zone while in Spain auction on Treasury bonds will take place. The single currency region will report its separate data on consumer confidence.

United States will report several economic indicators including data on weekly jobless claims, continuing claims, economic expectations, consumer comfort, existing home sales, index of leading economic indicators and natural gas supplies by Energy Information Administration.

On Friday, April 20^th, in euro zone, data on German producer prices is expected while IFO institute will publish its report on consumer expectations, current assessment and business climate for Germany. In United States, meeting of G-20 finance ministers is to take place while the American Petroleum Institute will publish its monthly report.

Major factors to affect the trading of the pair EUR/USD for the week are as follows:

On Monday market in USA remained closed in observance of the Presidents’ Day.

Today on Tuesday, In United States, Chicago Fed Nat Activity Index was released. In euro zone data on consumer confidence was published. Switzerland reported its official data on country’s trade balance and Money Supply M3.

On Wednesday, February 22^nd, 2012, German purchasing manager index for manufacturing and services sector will be reported in euro zone while a separate report on PMI for manufacturing and services sector will be reported for the single currency region. Data on industrial new orders will also be released in the euro zone. United States will report its data on mortgage approvals and existing home sales.

On Thursday, February 23^rd, several reports will be published in United States which will include weekly data on initial jobless claims, continuing claims, house price index, data on crude oil supplies and Kansas City Fed Manufacturing activity.

In euro zone, data on business climate and current assessment by German IFO institute will be reported.

On Friday, Germany will report its data on gross domestic product, private consumption, capital investment, exports and imports, government spending and gross fixed capital formation. In United States data on new home sales will be released while University of Michigan will release its report on consumer confidence.

Major events to affect the trading of the pair EUR/USD for the week ending February 17th, 2012 are as under:

On Monday, in euro zone, data on German wholesale price index was released was Switzerland published its report on producer and import prices.

On Tuesday, in euro zone, Greece released its figure on Gross Domestic Product. In France data on non-farm payrolls was reported while Germany published its ZEW survey on current situation. Data on industrial production with ZEW survey for economic sentiment was released for the single currency region.

On Wednesday, February 15^th, 2012, Germany, France and Italy will report their data on Gross Domestic Product while a separate report on GDP will be published for the single currency region. Data on euro zone’s trade balance will also be reported on Wednesday. In United States several economic indicators and reports will be published which will include data on mortgage approvals, consumer price index, industrial production, capacity utilization, housing market index and EIA’s data on crude oil, gasoline and distillate inventories. US Federal Reserve will also release the minutes of its latest monetary policy meeting.

On Thursday, in euro zone, data on Greek and Spanish GDP will be published while Italy will report its figures on country’s trade balance and current account. In United States, data on housing starts, continuing claims, building permits, producer price index and initial jobless claims will be reported. US Federal Reserve’s chairman Ben Bernanke will also address at an event in Arlington.

On Friday, February 17^th, 2012, data on German producer prices will be reported in the euro zone while as separate report on current account of the single currency region will be published. Data on construction output will also be reported in euro zone. United States will report its data on consumer price index while American Petroleum Institute will publish its monthly report.

Major economic events that could impact the trading of the euro against the US dollar for the week ending January 20^th, 2012 are as follows:

On Monday, stock markets in United States remained closed in observance of the Martin Luther King Jr. Day. In euro zone, European Central Bank’s President, Mario Draghi appeared before the European Parliament’s Economic and Monetary Affairs Committee.

On Tuesday, in euro zone, data on consumer price inflation and ZEW index of economic sentiment was released. Moreover, report on German ZEW economic sentiment index was also published today. In United States, Empire State Manufacturing index was reported.

On Wednesday, January 18^th, 2012, several reports will be published United States which will include data on producer price inflation, data on foreign purchases of long term securities, data on industrial production, data on crude oil stockpiles and report on capacity utilization rate by US Federal Reserve.

On January 19^th, 2012, United States will release its data on building reports along with its official data on consumer price inflation. Moreover, the US Labor Department will publish its data on jobless claims along with official data on housing starts and manufacturing activity in Philadelphia.

In euro zone, European Central Bank will publish its data on current account along with its monthly bulletin.

On Friday January 20^th, 2012, the United States will report its data on existing home sales by National Association of Realtors.