The Euro continued its rally against the U.S. Dollar. The rally was supported by an array of weak economic data since last week. The latest figure, Non Manufacturing Purchasing Manager's index, released yesterday came less than expected. The EUR traded much higher against the USD during yesterday's trading session as it reached $1.2661. Thereafter it paired some of it gains, while analysts raised concerns about the EUR. The rally thus far is seen more as a correction as traders locked recent profits from betting against the EUR. The Euro is also supported by the speculation that China is buying the Euro to keep the European currency high and support local export to Europe.

The EUR also staged a rally versus the British Pound; EUR/GBP is currently trading at 0.8330, two weeks high, after hitting 19-month lows at a 0.8065.

Looking ahead to today, the most important economic indicator scheduled to be released from the Euro-Zone is the German Factory Orders at 10:00 GMT. Analysts are forecasting this figure to decrease from its previous reading. Traders will be paying close attention to today's announcement as a stronger than expected result may continue to boost the EUR in the short-term.