The Euro rose against most of its major counterparts during last week's trading session. The EUR rose to a 14-month high against the Dollar as the EUR/USD pair reached the 1.4965 level. The Euro also saw a bullish trend against the Yen.
The Euro rose last week despite some relatively negative data published from the Euro-Zone. The most crucial publication was the German ZEW Economic Sentiment, which is a survey of about 350 institutional investors and analysts who are asked to rate the next 6-month outlook for Germany. The survey dropped to 56.0 from 57.7 on September, failing to reach expectations of a 58.6 reading. The European Core Consumer Price Index for September dropped by 0.3%. This marked the 4th drop in a row. Consumer prices account for a majority of overall inflation, and thus a repeatedly negative results show that maybe the European economies aren't recovering as quickly as expected.
Nevertheless, despite some unfortunate figures from the Euro-Zone, the Euro appreciated against most of the major currencies. It seems that the main reason for this turn of events is the weak Dollar, which boosted the Euro. As long as the Dollar continues to fall against the majors, the Euro is likely to continue appreciating.
Looking ahead to this week, many interesting data releases are expected from the Euro-Zone. The most impacting publication is likely to be the German Ifo Business Climate report. This report is a survey of about 7,000 business who are asked to rate the current business conditions and expectations for the next 6 months. If this report will also fail to reach expectations it has the potential to reverse the Euro's currently bullish trend.