Economic fundamentals will fade into the background as the Japanese yen exchange rate continues to be a direct reflection of financial markets' risk sentiment amid the continuing global credit crisis.

U.S. pending home sales is anticipated to fall another 1.1% after declining 3.2% in July, which suggests that the downturn in the housing sector will continue to limit economic activity throughout the second half of the year.

The focus on financial crisis has been magnified for the UK this past week, which may mean a new leg of declines for the British pound.

Forecasts for the euro/US dollar exchange rate took a turn for the worse, as a steady stream of bearish economic data dimmed outlook for the broader Euro-Zone economy.

Business confidence in Germany is anticipated to fall to 94.3 from 94.8 in August as Europe’s largest economy is on the brink of a recession.

U.K. retail sales are expected to falter after last month’s unexpected improvement. Market participants anticipate a 0.5% decline in spending as rampant inflation continues sap purchasing power.

Typically, housing starts has not been able to driven price action in the past, but with mortgage applications and existing home sales on the rise, an improvement in construction could provide dollar support.

Has the greenback's rally come to an abrupt end or is this just a breather before the buying continues?

The Japanese yen has been heavily bid in most corners of the currency market, and the volatility is only expected to increase going into next weekend.

There are rare times when the Swiss data is significant enough to show up on the event risk radar.