After a successful test of the 1.4000 level, the Euro is once again posting strong gains as traders boost bets that the European Central Bank will begin raising interest rates as early as next week.

The Euro is trading a little lower versus the U.S. Dollar this morning. Indecision seems to be the theme as traders mull over whether the European Central Bank has enough economic data to support an interest rate hike as early as next week. The lack of clarity and conviction from the ECB is helping to keep bullish traders on the sidelines at this time.

The Euro is rebounding this morning after a sharp sell-off on Wednesday. Pressure was on the single currency yesterday following the confirmation of a technical closing price reversal top the day before. Fundamentally, traders turned bearish on the currency after Moody’s Investors Service downgraded 30 Spanish banks and following the resignation of Portugal’s prime minister.