Although the Euro had a hiccup with some profit-taking early in the week, there has been a sustainable rally sense and it looks like it will end the week higher. This is in light of the fact that economic sentiment data was released better than expected, and retail sales from your roll and came out better than expected as well.

There is a very good explanation for this profit-taking, the reason being, when economic news comes out better-than-expected coupled with sentiments data coming out better-than-expected that's indicates that perhaps the price needs to fall if it is in fact up.

Granted, economic news is a leading indicator, while sentiment is a lagging indicator, so when both are coming out better-than-expected that's most likely a time for profit-taking. This reason is a perfectly logical explanation, because sentiment does not affect the equation for GDP, when sentiment is coming out greater than expected, the markets will autonomously discount that factor. And, because markets are already up, it is a perfectly good reason to take profits because sentiment does not simply supply any greater factor for GDP.

Now, there's been some suspicion, with the price fall out in the U.S. dollar. Analysts are calling for a bottoming dollar for 2018 on the whole. One explanation for this fall out, could be the reverse QE which we've been seeing an increase in reserves, while the quantity supplied is decreasing, you couple this with US bonds becoming less in demand, and you see an inching up in interest rates with the lessening supply, and, so the value of the US dollar decreases with reverse QE.

Here's a recent chart of stock FXE, representing the ETF for the Euro, depicted below:


With all that said the Euro should still be on track to end up higher However, there will still need to be positive for the Euro to go up based on sentiment alone.
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