From Our Friend at EverBank, Chuck Butler:

What Happened:

In case you missed it, the euro pushed back higher overnight to 1.5775. And as luck would have it, the European Central Bank (ECB) meets on Thursday this week.

Yes, while most the markets' participants in the U.S. will be dreaming of barbequed ribs, fireworks, and a long weekend, the ECB will be hiking rates again.

What I Say:

The most important part of Thursday's decision will be ECB President Trichet's press conference following the rate hike. It will be important for Trichet to remain hawkish on the economy. Otherwise, profit takers will quickly swallow up all momentum from the rate hike. If that happens, the euro won't get to enjoy the higher rates and push higher.

Meanwhile, Trichet received an arrow for his rate hike quiver this morning. German unemployment for June fell to a 16-year low.

This tells me, and should tell you, the barber, and the guy down on the corner selling bakery pretzels that Germany is resisting the global slowdown so far.

Germany is the Eurozone's largest economy, so this report carries a lot of weight with Trichet and the other ECB ministers. Annual growth in Germany remains above that in the U.S. and the employment picture is healthier than the U.S.'s - but then again, that's not difficult these days.