While the euro saw some fairly substantial gains against the dollar yesterday, the currency was bearish against the UK pound and Japanese yen. The EUR/GBP fell some 60 pips yesterday, and is currently trading around the 0.8605 level. The EUR/JPY pair fell over 40 pips yesterday before staging a slight correction. Currently the pair is trading around the 112.50 level.

Analysts attribute the mixed euro movement to predictions that the euro-zone will likely raise interest rates before the United States. At the same time the most recent Bank of England MPC meeting highlighted positive growth forecasts for the UK economy, resulting in gains for sterling.

Today, traders will want to pay attention to the major news events out of the United States. Current predictions are calling for a decline in several key US economic sectors, which if true, is likely to further boost the euro against the greenback. Analysts are currently predicting the EUR/USD pair could test the 1.3785 resistance level before the end of the day.