The British Pound climbed to a 3-month high vs. the Dollar in Monday's trading. This came about as the British stock market rose for a 4th consecutive day. Both of these factors were driven by the weakness of the USD and the initial equity market rally on Wall Street. With regards to the EUR, it soared against the Dollar, due to Optimistic German industrial Production data on Monday. The strong EUR is a concern for the Euro-Zone, as it hurts the region's exports to trading partners, such as the U.S. and China.

The EUR/USD cross went bullish in yesterday's trading, as the pair rose by 40 pips to the 1.4978 level. The Pound rose to as high as the 1.6842 mark vs. the USD, as traders were very bullish on the Pound yesterday. However, the pair closed at around the 1.6750 level. Looking at the EUR/GBP cross, it rose only 7 pips, as both the British and Euro-Zone currencies were strong yesterday. It will be difficult for the Euro-Zone policy makers to weaken the EUR, due to choosing a tight monetary policy from the beginning of the financial crisis.

Tuesday's trading offers promising opportunities with regards to both the EUR and GBP's. The main releases that are set to be published from Britain are the Trade Balance at 09:30 GMT and the CB Leading Index at 10:00 GMT. From the Euro-Zone, the French Industrial Production will be published at 07:45 GMT and the German ZEW Economic Sentiment will be released at 10:00 GMT. These publications are set to be crucial in determining the strength of the GBP and EUR crosses, as mid-week trading approaches.