The Euro dropped against most of the major currencies during last week's trading session. The Euro dropped about 200 pips against the Dollar as the EUR/USD pair reached a weekly low a 1.3200. The Euro dropped about 200 pips against the Pound as well.
The main reason for the Euro's bearishness continues to be the fragile Greek debt issue. There are currently concerns that that the $60 billion bailout plan by the Euro-Zone will fail to ease investors' woes regarding Greece's ability to recover from the debt crisis. It appears that until Greece will publish concrete data that shows real improvement regarding its fiscal crisis, the Euro might continue to tumble. Even several positive data from the Euro-Zone's leading nations failed to support the Euro. The German ZEW Economic Sentiment rose to 53.0 points. This reflects the best result in 6 months, indicating that German investors feel greater confidence regarding their financial outlook. In addition, the German Manufacturing Purchasing Managers' Index rose to a record high in April. The manufacturing sector rose to 61.3 in April from 60.2 in March, marking a record high. Yet it seems that as long as the Greece debt crisis continues to be the main story, the Euro could fall farther.
Looking ahead to this week, traders are advised to look for every update regarding the Greek fiscal crisis, as every data on this issue tends to have an instant impact on the Euro. In addition, traders should follow the major publications from the German economy. Such as the Preliminary Consumer Price Index on Wednesday and the Unemployment Change on Thursday.