Currency traders sent the euro sharply lower against the US dollar mere days after it surged to 9-month highs.

A relatively empty week of US economic event risk leaves the currency at the whims of broader financial market volatility in the days ahead.

Market expectations leading up to the FOMC rate announcement virtually guarantee major US dollar moves regardless of outcome.

The US dollar finished the week lower against all major currencies except the Japanese Yen, but a later-week reversal suggests that the dollar may have set an important low.

The euro set fresh 9-month high against the US Dollar, but a late-Friday reversal warns that the single currency may be on the cusp of a much larger correction following substantial gains.

The US dollar fell sharply against all major counterparts through the week’s close, but its ability to stay above fresh lows suggests that it could correct higher in the week ahead.

The euro finished the week sharply higher on continued US dollar weakness, easily closing above the psychologically significant 1.35 mark and poised to test the next substantial hurdle at 1.40.

Market focus on the Fed's next moves will make US economic data especially market moving.

The euro may struggle to retrace the decline from earlier this year, and the central bank may look to preserve monetary support during the first-half of 2011 as the economic recovery cools.

The US dollar traded slightly higher against major forex counterparts in an uneventful week of trading, showing little impetus to break important support or resistance levels on similarly lackluster price action across broader financial markets.