The Euro plunged against most of its major counterparts last week. The Euro saw mixed results against the Dollar, yet weakened against both the Pound and the Yen. The Euro dropped about 400 pips against the Yen, and the EUR/JPY pair fell to the 109.52 level.
The Euro's slide came as a result of several disappointing economic publications from the Euro-Zone. The European Current Account, which measures the difference in value between imported and exported goods and services, showed a €5.1 billion deficit in April, swinging from a €1.5 billion surplus in March. In addition, the Belgium Business Climate survey, which asks about 6,000 businesses to rate their business conditions and expectations for the next 6 months, dropped for the 27th consecutive time. Another disappointing economic publication was the Industrial New Orders report. The report showed that European industrial new orders rose by 0.9%, yet failed to reach expectations of 1.6%.
Following the ongoing gloomy forecasts regarding the Euro-Zone's future, it seems that until solid data will prove that the European economies are truly recovering, the Euro may continue to tumble against the major currencies.
As for this week, traders are advised to follow the major publications from the German economy, such as the German Preliminary Consumer Price Index and the German Unemployment Claims. If the end results will show further recovery of the German economy, which is the largest and strongest economy in the Euro-Zone, the Euro might correct some of its losses. Traders are also recommended to follow The European Central Bank (ECB) President Trichet's speech on Wednesday. Trichet is likely to discuss the ECB's future plans and policy, and large volatility is likely to take place during his speech.