The Euro saw mixed results during last week's trading session. The Euro tumbled to a 14-month low vs. the Dollar, and also saw bearish trends against the Pound and the Yen. However, close to the weekend the Euro managed to recover some if its losses versus the majors.
The EUR's freefall from the past week was first and foremost due to the Greek debt crisis. The ongoing concerns regarding the Euro-Zone's ability to offer a rescue package and, moreover, the concerns regarding the outcome of such a package and the message it send towards the other swinging economies have all weakened the Euro. The uncertainty regarding the stability of the Euro-Zone has turned investors to look for safe-haven assets such as the Dollar and the Yen.
However, over the weekend the European leaders have agreed on a $962 billion loan package for the region, which is expected to prevent Greece's fiscal woes from expanding to the rest of the Euro-Zone. The immediate reaction has boosted the Euro that gained over 400 pips against the Dollar since Friday and continues to strengthen at the moment.
As for this week, traders should keep following every development regarding the Greek debt crisis. This issue has the largest impact on the market for the past several weeks, and this isn't likely to change in the near future. At the moment it seems that the recent rescue package is contributing to the Euro's recovery, yet as the market remains fragile, every pessimistic update on this issue might weaken the Euro once again.