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Forex market volatility has remained high, but many of the major currency pairs have simply range-traded between key support and resistance levels.  Event risk for the US dollar, British pound, and Canadian dollar will pick up quite a bit this week, providing potential for breakouts across the majors.

The US dollar’s strong open on Sunday was followed by weakness throughout the European and US trading sessions.

Signs of stability in the US manufacturing sector has failed to turn around the market’s risk appetite.  Although the US dollar has weakened marginally against all of the major currencies, if US stocks continue to sell off, we could see the dollar regain strength.

Wall Street is bracing for some really bad news from this week’s economic reports. Housing starts are expected to hit half-century lows.  The Consumer Price Index is expected to fall 0.9% in October, the biggest one-month decline since the government began tracking the CPI in 1947.

John Mauldin looks at some of the recent data on unemployment and retail sales, thinks about the implications of a falling trade deficit and a rising US government deficit, speculates about the potential for a serious stock market rally, and also comments on the potential for a GM bailout.

Professional system trader Art Collins shares his daily biases in the index, bonds and currency futures markets for November 17.

The strength of the greenback has been all the more surprising given the dismal status of the US economy, but since the currency has managed to hold on to its status as a "safe haven" asset, fundamentals frankly do not matter at this juncture.

The vacillation in risk appetite has been constrained for most of November, but the steady rise in volatility and refocus on larger fundamental themes in the currency market promise breakouts and revived trends.

Euro forecasts against the US ollar took a turn for the worse on the week, as generally dismal European economic data and further losses in the US Dow Jones Industrials Average led to similar euro-US dollar weakness.