The EUR rallied against the Dollar yesterday after minutes from the last meeting of the Federal Reserve's policy-setting panel showed officials expect inflation to remain subdued for some time. The EUR touched a fresh 14-month high versus the Dollar above 1.4950, a fresh session high and it's highest since August 2008. The European currency finished around 100 pips higher against the JPY to finish yesterday's trading session at the 133.75 level.

Another leading indicator released yesterday was EUR Industrial Production. European industrial output rose for a fourth month in August, adding to signs the Euro-Zone economy is emerging from the recession. Production in Europe increased 0.9% from July, when it gained 0.2%.

Confidence in the European economic outlook improved to a one-year high last month, and a gauge of Euro-Zone manufacturing and services industries showed a stronger expansion than initially estimated. The survey showed a significant improvement, thereby boosting hopes that the rate of decline in the Euro-Zone economy is now moderating.

Sentiment in the Euro Zone economy has brightened in the past week following better-than-expected news. The EUR is showing signs of resilience even though there was volatility throughout non-EUR crosses. It will be crucial for traders to identify how the preceding economic indicators from the U.S., European and Japanese economies will affect their positions.