EURUSD Fundamental :
EUR Preliminary Manufacturing Data Horrid, Euro-Zone Likely in Recession
Moving on, European data showed that the preliminary release of October's manufacturing PMI slid to 41.3, far below expectations. The services sector also showed a sharper contraction falling to 46.9. The data suggests that the Euro-zone is likely already in a recession, and now expectations for its severity and length are becoming more pessimistic. The ECB cut rates by 50 basis points to 3.75% as part of a global coordinated move to reduce borrowing costs earlier in the month. Now, expectations are that the Governing Council will slash rates another 50 basis points in their meeting next month.
Looking ahead to next week, traders will continue to look for a stock market bottom and end to US dollar strength. Shifts in risk appetite have been extremely erratic, sending currencies straight through key support/resistance levels without even pausing, and as a result, it is very dangerous to try to catch turns. That said, the US economic calendar is chock full of market-moving data next week, and all of it has the potential to lead the greenback to finally decline.

Euro Dives Amidst Evidence of Q3 Economic Contraction, ECB Rate Cuts
The euro fell roughly 300 points during the European trading session to an intraday low of 1.2494 on Friday as data from the region was broadly disappointing. In fact, the Purchasing Managers' Index (PMI) for both the Euro-zone services and manufacturing sectors held below 50 for the fifth consecutive month, signaling a contraction in business activity and suggesting that the region will be one of the next to release negative Q3 GDP results. Furthermore, the composite index fell to the lowest level since record-keeping began in 1998. Keeping this in mind, Credit Suisse overnight index swaps are pricing in nearly 125bps worth of rate cuts by the European Central Bank over the next 12 months, and there is some speculation that the bank will enact a 25bp reduction as soon as next month. The potential for lower interest rates presents further downside risks for the euro, but with the Federal Reserve expected to cut US rates as soon as next week, EUR/USD could bounce higher in the near-term.