The Euro saw a volatile session against the major currencies during last week's trading. The Euro managed to strengthen against the Dollar, yet saw mixed results against the Yen and the Pound.
Despite the weak Dollar, the Euro didn't manage to strengthen against the major currencies. Usually, when the Dollar is so weak, the Euro gets stronger, yet last week this axiom failed to exist. The main reason that the Euro didn't strengthen appears to be the negative data released from the German economy. German Economic Sentiment dropped in November to its lowest result in 4 months, reaching merely 51.1, far less than the expected 55.2 figure. This states that the German economy's pace of recovery might be a little slower than expected. In addition, the German Preliminary Gross Domestic Product failed to reach expectations for a 0.9% growth, and rose by only 0.7%. These two leading indicators have created hesitations among investors regarding the Euro-Zone's recovery, and by so have weakened the Euro.
As for this week, a batch of data is expected from the Euro-Zone. The most impacting publications look to be the European Consumer Price Indices, the European Current Account, and especially the German Producer Price Index. Following the recent disappointing data from the German economy, further negative data could have an extremely negative impact on the Euro. Considering that this is the most significant data from the German economy this week, traders are advised to follow its result.