The Euro continued to strengthen yesterday against most of the major currencies. The Euro rose to a 2-week high against the Dollar and the EUR/USD pair is currently trading above the 1.2300 level. The Euro saw gains vs. the Pound and the Yen as well.

The Euro rallied today as gains in global markets increased the demand for riskier assets. The current global sentiment is that the Euro-Zone will manage to recover from the debt crisis and that the worst of it is behind us. This has increased risk-appetite and has influenced investors to open long positions on the Euro. It currently seems that as long as global markets will continue to show positive signs, the Euro is likely to strengthen in accordance. In addition, every positive data regarding the Euro-Zone's debt crisis is likely to have a positive affect on the Euro as well. Rising stocks have such a strong impact on the market that the disappointing German ZEW Economic Sentiment had no affect on the market. The report dropped to 28.7 points from 45.8 on May, failing to reach expectations for a 48.7 result.

Looking ahead to today, many interesting economic publications are expected from the Euro-Zone. The most significant data seems to be the Consumer Price Indices (CPI). Analysts have forecasted that the European CPI will by 1.6% in May. If the end result will be similar, the Euro is likely to strengthen as a result. Traders are also advised to follow global stock markets, and to take under consideration that if the positive trend will continue, the Euro is likely rise as well.