The euro has apparently risen sharply following a period of short-covering and boosted risk appetite. A sudden surge in French risk seeking has helped the 16-nation single currency recover a moderate amount of its previous losses. The EUR rose significantly against both of its primary rivals, the USD and GBP.

Against the dollar, the euro temporarily traded above 1.22 before calming back down towards 1.21. The story was slightly different versus the British pound with a rapid rise from 0.8220 to 0.8350 since last Friday. The price of both pairs has appeared to stabilize as of this morning.

Adding weight to the euro's recent climb for Monday morning was a report released by the Bank for International Settlements (BIS), which stated that the euro zone was in need of further diversification. While it did not bode well for the region itself, it adds pressure to the currencies which represent the largest rivalry against the euro. This in turn helps return a modicum of value back to the euro.

With the euro zone's regional industrial production figures due today - and being the only significant report being released - the euro appears to be the headline currency of the forex market. Should these figures turn out positive, we should see some appreciation in the 16-nation single currency as risk appetite continues to grow.