Last week, the Euro saw volatile activity against the major currencies. The EUR first dropped against the Dollar, just to rise back up. The EUR saw a strong bullish trend against the Pound, as the EUR/GBP pair rose over the 0.8820 level. However, the Euro dropped almost 400 pips against the Yen.

The EUR began last week's trading with falling trends largely due to the positive economic data published from the U.S economy. However, as the week proceeded, a batch of positive economic data saw light from the Euro-Zone as well, jumping the Euro back up. The German Business Climate report saw an 11-month high, proving that businesses in Germany feel the economy is on the right track to recover from the global crisis.

Also last week, the German Consumer Climate index rose by 3.7 points, marking a 15-month record, supporting the sentiment that the German economy could be the first leading economy to pull out of recession. Considering that Germany holds the largest and strongest economy in the Euro-Zone, a continuation of such data is likely to strengthen the Euro against the major currencies.

As for this week, many interesting publications are expected from the Euro-Zone. The German Retails Sales is scheduled on Tuesday 06:00 GMT. This report measures the total value of inflation-adjusted sales at the retail level, and is considered to be a reliable indication for an economy's health. A positive data is likely to boost the Euro. Another publication that traders are advised to focus on is the Revised Gross Domestic Product (GDP) expected on Wednesday. Current expectations are that the European GDP has dropped by 0.1% during the second quarter of the year. However, a surprising result is likely to affect the Euro, and traders should be prepared.