The Euro managed to erase some of its losses against the major currencies during last week's trading. The Euro gained about 100 pips against the Dollar and the Pound, and rose close to 200 pips against the Yen, having the EUR/JPY reach above the 125.00 level.

The main reason for the Euro's uptrend seems to be the speculations regarding the Greece rescue plan by the Euro-Zone. It is expected that the Euro-Zone finance ministers will agree on Monday on a mechanism for helping Greece financially. Such a plan, if will indeed be announced this week, has potential to boost the Euro further. Every publication of potential rescue plan has strengthened the Euro so far, and a final solution to the Greek debt crisis is likely to be received as a strong signal that the Euro-Zone has healthy economies that can aid Greece.

Looking ahead to this week, a batch of data is expected from the Euro-Zone. The main publication looks to be the German ZEW Economic Sentiment. This is a survey of about 350 German institutional investors and analysts that are asked to rate the next 6-month outlook for Germany. Traders should also keep close attention to any development regarding the Greece bailout plan. This seems to be the most urgent matter at the moment, and any publication on the subject is likely to create harsh volatility in the market.