Amid speculation that a report being released on Thursday will show an increase in production in Italy and France, the Euro made impressive gains against both the Dollar and Yen in early morning trading. This is leading to speculation that the European Central Bank (ECB) may be able to abandon its policy of accommodating its banks in the near future.

Traders may want to pay attention to any news coming out of the ECB. Positive economic data could signal that Europe is recovering faster then America and Japan, and could lead to further gains for the EUR. At the same time, if the U.S. unemployment figures come in as expected, the Euro could lose ground on the dollar. A stable U.S. jobs market will likely lead to gains for the Dollar and could result in a repeat of this past week's EUR losses.

Against the Yen, the EUR made gains after a strong Australian jobs report brought back investors to risk taking. It would appear that the positive news from Australia has halted the gains the Yen had made in the last few days. With the European production figures set to be released today, the Euro could emerge even stronger in afternoon trading.