While the electoral victory for Angela Merkel's Christian Democratic Union party in Germany had the EUR on a short bullish run, the momentum has apparently shifted back in favor of the safer currencies such as the Dollar and Yen. The EUR/USD dropped as low as 1.4563 in yesterday's early morning hours, before correcting slightly back towards 1.4620. The EUR continues to outpace the Pound, which is getting closer to parity with each passing day.

The currency markets appear to be awaiting the string of important US employment data due this week before jumping into a clear direction. In such times of uncertainty, the traditional safe-havens begin gaining ground, as many traders have witnessed these past few days with the USD and JPY. Risk appetite has started waning as last week's housing data from the US kicked off a retreat from higher yielding currencies. The slump in commodity prices also put downward pressure on the riskier European currencies.

Today's data releases are aimed more at the British Pound and US Dollar than anything else, so the EUR will likely take a passenger-side role in today's market. Traders should not be deceived, however, as no news in such uncertain times can often appear as good news. Current trends for the day do not appear to be threatened by today's releases, and traders should feel safe to jump into current trends but stay safe by getting out by day's end. Tomorrow kicks off the hectic forex schedule regarding the first week of a new month's employment reports from the US.