Despite concerns over prevailing debt issues in the Euro zone, it looks like the euro is going strong as ever after reaching a five-month peak versus the US dollar last Friday. What propelled this move is the German business confidence, which rose to the highest level in 3 years. From the expected 106.3, it jumped to 106.8 in September. Federal Reserve’s admission that US economic recovery is slow also fueled the appetite for better yielding assets in the forex trading market. As such, the euro enjoys a bullish momentum, as the EUR/USD pair traded at high of 1.3495 and a low of 1.3286.

The British pound also joined the euro on its rally against the dollar, after it finally reached a 6-week high to end the week. Though plagued by issues on the reported economic outlook by the Bank of England, the poor economic data from the US released last Friday obscured its implications. The momentum will continue to be bullish as long as the pound trades above the 1.5750 level. The GBP/USD closed at a low of 1.5641 and a high of 1.5844.

The dollar declined versus major currencies, including the Japanese yen, after reports of poor economic data last Friday and the implications of weaker economic recovery. The USD/JPY reached a low of 84.11 and a high of 85.39.