EUR review

The Euro rallied to a 3-month high against the US dollar on Friday after poor US economic data releases. The Euro also continues to benefit from a recent sharp rise in Euro Zone government bond yields. 

The move in bonds reflects optimism that deflation problems in the Euro Zone are clearing up and the economy rebounding more quickly. Consequently the ECB may have to consider trimming the size of its QE program later this year. 

Economists believe several Euro Zone reports this week will show the region's economic rebound slowing. Tuesday's German ZEW Index release at 10:00 is predicted to fall, while Thursday's Euro Zone PMI survey's may show a slower pace of expansion in key industries. Greece's debt negotiations are on-going and continue to move towards a more critical timeline as the government's cash runs out.