Following a significant jump in the global stock market yesterday, the euro made substantial gains on most of its main currency rivals. EUR/USD hit a 2-month high before making a slight downward correction. Currently the pair is trading around the 1.2720 level. Against the yen, the euro moved up well over 200 pips during the last 24 hours. Currently EUR/JPY is trading steadily around the 113.10 level.
Today, traders will want to pay attention a number of U.S. news events, as well as several European ones. Euro-zone CPI and Industrial Production figures, set to be released at 09:00 GMT, are forecasted to come in above last month's levels. If this is indeed the case, investor confidence in the global economic recovery is likely to increase further. This would likely elevate the euro against the dollar, yen and British pound. Furthermore, several U.S. economic indicators are predicted to come in below last month's figures. Should the American economy show further signs of deterioration, the dollar will likely continue to suffer against the euro as a result.