During yesterday's trading session, the Euro dropped against all the major currencies. The Euro is currently traded at a 9-month low against the Dollar, as the EUR/USD pair dropped over 200 pips, reaching the 1.3670 level.
The Euro's decline was initiated today when the European Central Bank (ECB) announced that the Minimum Bid Rates, which are the European Interest Rates for February, will be left at record low of 1.00%. The Euro dropped sharply as a result, expressing investors' desire to see an interest rates hike in the Euro-Zone. In addition, following Greece's deficit concerns, the ECB President Jean-Claude Trichet said today the many Euro-Zone countries will have large, sharply fiscal imbalances. There are currently concrete worries that the Euro-Zone's leading economies will be damaged as a result of the difficulties of the smaller economies, turning investors to look for safer currencies such as the Dollar and the Yen.
Looking ahead to today, the most interesting data from the Euro-Zone looks to be the German Industrial Production figures for December. Analysts forecast that the Industrial Production, which measures the value of output produced by manufacturers, rose by 0.6% on December. If the actual result will be similar, it is likely to support the Euro.