The Euro extended the rally from earlier this week as unemployment in Germany slipped to the lowest level in 18 years, and the single-currency may continue to push higher ahead of the EU Summit later this week as market participants speculate the group to take additional steps in addressing the sovereign debt crisis. The EU is expected to empower the European Financial Stability Facility with the ability to directly purchase government debt, and the efforts should help to restore investor confidence as European policy makers look at alternative measures to strengthen the financial system. However, as the near-term rally in the EUR/USD fails to push the exchange rate above 1.3800, the exchange rate may consolidate going onto the middle of the week, and the euro may trend sideways in February as investors weigh the outlook for future policy.