The euro dropped against most of its major counterparts during last week's trading session. The euro began last week with a rising trend, yet finished it with a 70 pip loss against the U.S. dollar and a 120 pips loss against the Japanese yen.
The euro fell last week as negative data from the euro-zone's leading economies have increased concerns regarding the pace of recovery for the region. The German ZEW Economic Sentiment, a survey of German institutional investors and analysts who are asked to rate the 6-month outlook for Germany, dropped more than expected, and reached a 16-month low. This has been the 4th consecutive decline for this survey, suggesting that German economic growth may be slowing down. In addition, the euro-zone's Current Account, an indicator which measures the difference between imported and exported goods and services was released with a negative figure, the 3rd in a row. The negative report has decreased risk-appetite in the market, and turned investors to look for safe-haven currencies such as the yen.
Looking ahead to this week, traders are advised to follow the major economic releases from Germany, as it is the biggest economy in the euro-zone. Special attention should be given to the German Business Climate report, which will also try to detect the German economic outlook for the next 6 months. This week's euro trading will be largely affected by the result of this publication.