Euro Drops against the Majors

The Euro began last week's trading session with a sharp rise, mainly due to the Greek rescue plan. The European countries have agreed on a bailout plan for the Greek debt crisis over the past weekend. As a result, the Euro promptly rose against all the major currencies. However, as the week progressed the Euro saw a bearish trend, and erased profits. As it appears, the main reason for the Euro's downtrend was that there was no development to the Greece rescue plan. While investors were looking for every piece of data regarding the Greek debt crisis, it suddenly seemed that the Euro-Zone fails to deliver any updates on the issue. This has led investors once again to look for safer assets, such as the Dollar and the Yen. In addition, a series of positive data have been released from the U.S. economy. This has supported the Dollar against its major rivals, such as the Euro. In general, when the Dollar rallies, the Euro tends to drop and vice versa.

As for the week ahead, a batch of data is expected from the Euro-Zone. The most significant publications look to be the German ZEW Economic Sentiment on Tuesday and the German Business Climate on Friday. Traders should also follow the six leading publications which are expected from the Euro-Zone on Thursday morning.