Volatility expectations have generally trended lower ahead of what seems to be a week of limited Euro Zone economic event risk.

The US economic calendar promises far fewer top-tier releases in the days ahead, but what it lacks in quantity it compensates with substance.

Market prices and economist forecasts overwhelmingly point to unchanged European interest rates through the coming meeting, but financial markets will listen closely for details.

The outlook for the recently-downtrodden yen is somewhat unclear, but momentum plainly remains to the downside against all except the US dollar.

The coming week promises no shortage of euro/US dollar volatility, and economic sentiment could take a further turn for the worse on key PMI data.

Euro forecasts will depend on the general trajectory for risky asset classes, and several key pieces of European economic risk promise noteworthy volatility in domestic financial markets.

The US dollar's multi-month uptrend was put to the test on yet another week of S&P 500 rallies, and the Greenback looks as though it may finally break through key technical support against the euro and other key counterparts.

There is an ongoing debate as to whether the yen is a sensible safe haven currency considering the financial and economic troubles Japan is suffering.

If the US dollar regains its tight correlation to risky assets, it will be most important to watch movements in the S&P 500 and other key risk measures.

European macroeconomic trends point to further sharp contractions in regional economies, but bearish consensus forecasts for upcoming economic reports suggest that markets have largely discounted Euro Zone fundamental weakness.