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.

Given the mounting fears of a global recession, indicators of economic growth have been drawing quite a bit of attention lately.  As a result, the release of Euro-zone Q3 GDP and US retail sales along with speeches by Fed Chairman Bernanke and ECB President Trichet are sure to make the headlines and spur volatility in the forex markets this week.

What does this signal for tomorrow's jobs report?

Risk trends are still dominating price action in the US dollar, not fundamentals.

The euro's recent bullish momentum was stalled after it reached as high as 1.3300 ending a 900 pip rally, despite German unemployment falling for a fifth straight month as the number of unemployed dropped by 26,000.

Is there rebound potential for the British pound next week?

The lack of recovery in the credit market paired with narrowing demands for carry trades have certainly increased the appeal of the Swiss franc, and remains favorable in the week ahead as investors continue to curb their risk appetite.

The British Pound strengthened for the third consecutive day to spike above 1.7500 despite mounting growth concerns for Europe’s second largest economy.

The economic downturn in the U.S. may only get worse as economists project retail spending drop another 0.7% after falling 0.3% in August.