US economic data has crushed estimates and the first news is sending the US dollar higher in forex trading. Indeed, the news that the unemployment rate has fallen to 8.3%, and that the economy added 243,000 jobs in January has boosted demand for the US dollar.

The good news out of the US stands in contrast to the disappointing news out of the eurozone. Disappointing regional data is dragging on the euro so that it cannot take advantage of an environment of risk appetite.

Plus, the US dollar is showing such strength in forex trading that gold prices are pulling back. Gold has been steadily gaining strength, and the combination of profit taking, plus a stronger dollar, is enough to send gold prices lower today. 

Euro is falling today, in spite of the general inclination toward risk appetite right now. The latest news out of the eurozone is providing disappointment, and that is sending the euro lower in forex trading.

Retail sales information for December shows an unexpected drop, led by France and Germany. These are the two largest economies in the eurozone, and quite influential in terms of how the rest of the eurozone functions. This news has been quite a blow and has resulted in a lower euro in forex trading.

Indeed, euro is down in forex trading as the US dollar rises on better than expected jobs data. The prospect of economic recovery in the United States is balanced against economic disappointment in the eurozone, and the euro is losing out today in forex trading. 

There is just enough uncertainty in the FX market to send the euro lower today in forex trading against the US dollar. The 17-nation currency is heading lower as concerns about Greek debt remain, and as forex traders consider the United States.

Indeed, Ben Bernanke just told Congress that the United States remains vulnerable to financial problems as long as the issue of the deficit is avoided. The result is that there is uncertainty, even with recent good news out of the eurozone and even out of the United States.

For now, euro is pulling back, moving lower against the dollar and unable to regain the momentum from its recent rally. 

Initial jobless claims fell last week, but the news isn't spurring risk appetite. Instead, forex traders are focusing on other news right now. Concerns about corporate earnings, skepticism about a Greek deal, and uncertainty about Ben Bernanke's Congressional testimony later on all have forex traders a little jittery.

As a result, the US dollar has the upper hand against high beta currencies like the euro and the pound. US dollar is moving in tandem with gold prices right now, heading higher with gold, even as oil prices pull back.

It looks like an interesting day ahead. The forex trading forecast is likely to be a bit unsettled. Forex traders are looking for direction, and there are too many conflicting signals for anyone to really see some solid direction on the FX market. 

Initial jobless claims fell last week, but the news isn't spurring risk appetite. Instead, forex traders are focusing on other news right now. Concerns about corporate earnings, skepticism about a Greek deal, and uncertainty about Ben Bernanke's Congressional testimony later on all have forex traders a little jittery.

As a result, the US dollar has the upper hand against high beta currencies like the euro and the pound. US dollar is moving in tandem with gold prices right now, heading higher with gold, even as oil prices pull back.

It looks like an interesting day ahead. The forex trading forecast is likely to be a bit unsettled. Forex traders are looking for direction, and there are too many conflicting signals for anyone to really see some solid direction on the FX market.