EUR/USD – Steady Ahead of Major US Releases

EUR/USD has started the week quietly, in sharp contrast to the volatility we saw last week. In Tuesday's European session, the pair is trading in the low-1.31 range. Taking a look at economic news, there is only one Eurozone release today. Italian Retail Sales declined 0.1% posting its fourth consecutive drop. The markets are keeping a close eye on the US, which releases three key events later today - Core Durable Goods Orders, CB Consumer Confidence and New Home Sales.

The US dollar surged against the major currencies last week, as Federal Reserve chair Bernard Bernanke signaled that QE would likely be scaled down in 2013, and could be terminated in 2014, if growth and employment numbers continue to improve. The Fed said that it expects the economy to grow and unemployment to fall, which will allow for the scaling back of QE. This current round of QE has been in place since December 2012. Bernanke's comments bolstered the dollar against the major currencies, as winding...