The Euro continued to strengthen against most of the major currencies during last week's trading session. Despite a mild drop against the Yen, the Euro soared against the Dollar and the Pound.
The Euro rose following a batch of positive data published from the Euro-Zone. The positive publications from the German and French economies have boosted the Euro in particular. The German Business Climate survey rose from 91.9 in October to a 93.9 index in November, making a 15-month record high. This survey is considered to be very reliable in forecasting the German economic outlook for the next 6 months, and thus such a high figure shows that the German economy is indeed on its way to recovery. The French economy also saw positive signs last week. The Flash Services Purchasing Mangers' Index rose from a 57.7 index in October to 60.4 in November. This survey is showing an improving figure for the fourth consecutive month, stating that the French economy is on its way to recover from the recession as well. As long as the positive data from the Euro-Zone's leading economies continue, the Euro is likely to continue to rise.
As for this week, the most interesting data from the Euro-Zone is the Minimum Bid Rate announcement expected on Thursday. The Minimum Bid Rate is in fact the Euro-Zone's Interest Rates decision for December. Currently, analysts assume that the European Central Bank (ECB) will leave rates at 1.00%. However, if the ECB will surprise and hike rates, this has the potential to create mayhem in the market. Traders are advised to follow this event with extra caution.