The euro saw mixed results vs. the major currencies during last week's trading. The euro gained about 300 pips against the U.S. dollar. As such, the EUR/USD pair reached its highest level since May. However against the British pound and the yen the euro failed to strengthen, and mainly saw ups and downs.
The main reason for the euro's gains vs. the dollar seems to be the general weakness of the American economic recovery. Due to several negative economic releases from the U.S. economy, especially the Non-Farm Employment Change, the dollar fell against all the major currencies, including the euro.
Nevertheless, the euro continues to trudge vs. the rest of the major currencies as the economic condition of the euro-zone remains vague. While many reports claim that the European Central Bank will manage to recover from the sovereign debt crisis, the economic data being released from the euro-zone's leading economies fail to support that theory. In addition, the ECB continues to keep the euro-zone's interest rates at a record low of 1.00%. ECB President Trichet claims that the euro-zone economies are growing. At the same time, his decision to leave rates at a record low sends mixed signals to investors, which leads to the many fluctuations in prices.
As for the week ahead, traders are advised to follow the publications from the leading economies of the euro-zone, such as Germany and France. In particular, traders should follow the German Preliminary Gross Domestic Product (GDP) report, scheduled for Friday. The GDP measures the change in value of all goods and services produced by the economy, and its publication is likely to have a large impact on the euro.