The Euro underwent a volatile trading week. As the week began, the Euro saw bearish trends against most of the major currencies, including the Dollar and the Yen. However, close to the weekend, the Euro saw a reverse of trends and managed to recover.

The Euro's bullish trend came mainly as a result of the poor data published from the Euro-Zone last week. The German Preliminary Consumer Price Index (CPI) fell at a faster pace than expected. The report showed German CPI dropping by 0.4%, more than the 0.2% drop expected by analysts.

In addition, the German Retail Sales for August dropped by 1.5% as opposed to July. The Retails Sales measure the total value of inflation-adjusted sales at the retail level. The negative figures for both these German economic indicators have created speculations that the German economy's recovery might take longer than expected. This has driven investors to look to safe-havens such as the USD.

However, just before the weekend, the Euro managed to recover most of its losses. The Euro's appreciation came as a result of the poor employment data from the U.S. As for the week ahead, many interesting pieces of data are expected from the Euro-Zone. The most intriguing news is likely to be the Interest Rates announcement on Thursday. If the European Central Bank (ECB) will surprise and hike rates, a sharp rising trend might take place. Traders are advised to follow this publication very closely.