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Risk-taking was the name of the game during the Asian session.

With not a lot of top-tier reports scheduled in the next few hours, though, attention could turn to a German Court ruling scheduled today.

Will it keep the euro from gaining as many pips as the other higher-yielding currencies have?

Currency Snapshot

Major Forex Pairs Price Performance from MarketMilk
Major Forex Pairs Price Performance from MarketMilk

Fresh Market Headlines & Economic Data:

Upcoming Potential Catalysts on the Economic Calendar:

  • Switzerland’s CPI at 6:30 am GMT
  • France’s government budget balance at 6:45 am GMT
  • Spain’s unemployment change at 7:00 am GMT
  • Bundesbank President Weidmann to give a speech at 8:00 am GMT
  • U.K.’s final services PMI at 8:30 am GMT
  • German Court to rule on the legality of ECB purchases

What to Watch: EUR/USD

EUR/USD 1-hour Forex Chart
EUR/USD 1-hour Forex Chart

With only a couple of lower-tier reports on tap, London session traders can focus on a German Court ruling scheduled today. See, some geeks over in Germany believe that the ECB is overstepping its reach with its bond-buying program.

Analysts don’t think the German Court would want to rock the markets too much by ruling it “unconstitutional,” but German judges could limit Germany’s participation.

Specifically, it could set parameters for the size, risk profile, and how much the region’s top economy can contribute to the program.

An overly restrictive decision could weigh on the euro and put EUR/USD back to its descending channel on the 1-hour time frame.

We could see EUR/USD fall back to the 200 SMA or even the mid-channel levels below the 61.8% Fib.

A favorable decision or a non-event, on the other hand, can open EUR/USD up to a break-and-retest upswing situation just as the pair hits a 38.2% Fib retracement.

A bounce from its current levels could push EUR/USD back to its April highs just under 1.1030.