The most significant trend in the currencies world appears to be the European currency. During last week the Euro saw a 14-months record high against the Dollar, as the EUR/USD pair reached the 1.5055 level. The Euro also extended its bullish trend against the Yen, and the EUR/JPY pair is now traded above the 138.0 level.

One of the reasons that the Euro continues to strengthen against most of the major currencies seems to be the positive data from the German economy, which shows clear signs of recovery. The German Business Climate, which is a survey of about 7,000 businesses who are asked to rate the level pf current business conditions and expectations for the next 6 months, kept an above 90 rate for the third month in a row. This indicator rose to a 13-month high, which means that German businesses are under the impression that the recession is over. In addition, several other German economic indicators have provided positive results lately. Considering that the German economy is the largest and strongest economy in the Euro-Zone, any recovery signals are likely to support the Euro.

In addition, it seems that another significant reason for the Euro's bullish trend, is the weak, or unsettled Dollar. Due to an unclear condition of the U.S economy, the Dollar continues to drop against most of the major currencies. As long as this tend continues, the Euro could remain as the safest trend in the market.

Looking ahead to this week, a batch of data is expected from the Euro-Zone. Traders should follow the leading publications, especially from the German and French economies, as they have proven to have a large impact on the Euro. The most influencing news event looks to be the German Preliminary Gross Domestic Product on Wednesday. A positive figure, above expectations could elevate the Euro even further.