The Euro-Zone Industrial Production fell for a 2nd straight month in July, stressing the frailty of the Euro-Zone economic recovery. The data was -0.3% lower from the previous reading, sparking possible fears that European Central Bank (ECB) President Jean-Claude Trichet will raise Euro-Zone interest rates later than originally forecast. Yesterday, all of this actually led to a buy-up of the EUR, as the European currency's safe-haven status returned to the forefront.

The EUR made significant inroads into the U.S. Dollar, as the pair rose to 1.4614 level, it's highest in nearly a year. The EUR also gained against the GBP by nearly 50 pips, as investors favored the EUR over the British currency in yesterday's trading. It seems that despite yesterday's lack of confidence in Europe, the European currency seemed to act the opposite way to the equity market. The EUR marked its first bullish trading day vs. the JPY since Wednesday, as the cross closed significantly higher at the 133.20 level.

Today, the most significant release from the Euro-Zone will be the German ZEW Economic Statement at 9:00 GMT. This is expected to be the main source of volatility for the EUR in early trading, as it is a leading measure of economic health for both the German and Euro-Zone economies. From Britain, the main releases today are the CPI figures at 8:30 GMT and the Inflation Report Hearings at 8:45 GMT. Optimistic results may push the GBP significantly higher today. This would be a much needed boost for the Pound, as it seeks to reverse yesterday's losses against its major currency crosses.