In the last few weeks, the Euro finally broke through a level of resistance, against the USD, appreciating several cents. Whether the Euro continues to trade outside of its range will depend largely on whether the ECB raises interest rates in the next few months. Accordingly, Euro bulls are anxiously awaiting the release of German investor confidence data. While such data seems trivial and would not normally merit serious consideration, currency traders believe data supporting solid growth in Europe’s largest economy could be enough to tip the ECB in favor of hiking rates in the near-term, which would in turn, support the Euro. Bloomberg News reports:

“Amid the prevailing dollar-bearish sentiment, strong data in Germany could surely push up the euro again. Should the index rise more than expected, it will certainly raise expectations for ECB rate hikes,” said one currency strategist.

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