The Euro rose sharply yesterday against most of the major currencies. The Euro gained over 150 pips against the Dollar, and over 200 pips against the Yen. The Euro also saw a mild rising trend against the Pound.
The Euro was boosted on prospects that the Euro-Zone will aid Greece to restrain their budget crisis. Speculations regarding a possible bail-out plan have ignited demand for higher-yielding assets and strengthened the Euro, particularly against safe-haven assets such as the Dollar and the Yen. Current estimations consider a possibility that Germany will step up with a plan to support the Greek economy. As long as the optimism regarding the Greek economy will continue, higher-yielding assets, such as the Euro and the Pound, are likely to be supported.
As for today, traders are advised to continue looking for further indications regarding the Greek economy, as this seems to have the largest impact on the Euro at the moment. In addition, traders should follow the French Industrial Production report, which is scheduled for 07:45 GMT. This report measures the change in the total value of output produced by French manufacturers. Current expectations are that the French Industrial Production rose by 0.6% during December. If the end result will be similar, it looks to support the Euro.