The Euro rose against most of the major currencies during last week's trading session. The Euro saw rising trends against the Dollar, the Yen and the Pound. The most remarkable rise was against the Pound, as the pair rose to a six month high, reaching the 0.9290 level.
The Euro rose due to some positive data from the Euro-Zone. The European Retails Sales beat expectations for 0.4% drop, and dropped merely by 0.2% during August. The German Factory Orders rose by 1.4% on August. Rising purchase orders signal that manufacturers will increase activity as they work to fill orders, and thus this report shows that the German economy is indeed recovering. This has a significant affect over the Euro, as Germany holds the largest economy in the Euro-Zone. Also last week, the French Industrial Production rose by 1.8%, showing that the French economy is recovering as well. The improvement in the condition of the main economies in the Euro-Zone is very likely to have a positive impact on the Euro. As long as the good news will continue coming from the German and the French economies, the Euro will probably continue to rise.
Looking ahead to this week, the most impacting data seems to be the German ZEW Economic Sentiment, which is expected on Tuesday. It is a survey of about 500 German institutional investors and analysts who are asked to rate the next 6-minth economic outlook for Germany. As such, this report has an immense impact on the Euro, and traders should follow it, as a result above 60.0 is likely to push the Euro further upward against the major currencies.