NEW YORK (Dow Jones)--The euro rebounded from six-week lows on encouraging German economic data Tuesday, but all eyes remain focused on scheduled euro-zone meetings. The central question remains: Will Ireland seek a bailout to stabilize its fiscal situation--and might other weaker euro-zone nations follow? Overnight, German think-tank ZEW said its closely watched economic-expectations index rose to 1.8 points in November from -7.2 points in October. "The latest news on Germany provides some hope amid turmoil elsewhere in the euro zone," said Jennifer McKeown, an economist at Capital Economics. The euro overnight had hit its lowest point since Sept. 30, trading at $1.3560, based on fears of an Ireland contagion. The dollar continued its recent strong run against the yen--reaching as high as Y83.34, its highest level since Oct. 5--before receding back to being largely flat. Investors mostly are looking to see whether Ireland will change course and petition the European Union for emergency funding when the region's finance ministers meet Tuesday and Wednesday. E.U. officials are saying its fund facility is ready, but Ireland hasn't come forward. Irish officials say the nation is fully funded until the middle of 2011 and can also dip into its EUR25 billion pension reserve. With continued pressure on Ireland, however, analysts said that tune could quickly change. A deal with the E.U. could perhaps restore investor confidence and put a floor on recent euro losses, they added. "The market expectation is a deal of EUR50 to EUR80 billion either to be announced at the Eurogroup meeting [Tuesday] or the European Union Finance Ministers meeting [Wednesday]," said Chris Turner, head of foreign-exchange strategy at ING Financial Markets in London. "Should Ireland accept a deal this week, we could see the euro hold around $1.35," he said. If Portugal, the next front in the euro zone's rolling debt crisis, accepts some funding, that could help further, with the euro recovering to $1.40, said Turner. A lower-than-expected reading on the U.S. October producer price index helped to stoke the euro temporarily higher Tuesday morning. A November housing market index is due at 10 a.m. EDT. Tuesday morning, the euro was at $1.3602 from $1.3587 from late Monday, according to EBS via CQG. The dollar was at Y83.17 from Y83.17, while the euro was at Y113.12 from Y113.00. The U.K. pound was at $1.6005 from $1.6060. The dollar was at CHF0.9861 from CHF0.9848. The ICE Dollar Index, which tracks the dollar against a trade-weighted basket of currencies, was at 78.664 from 78.613. The focus remains on the euro zone's soft spots Tuesday. It's up to Ireland to decide whether it will ask the European Union for emergency funding, European Central Bank Vice President Vitor Constancio said Tuesday. However, if Ireland were to opt for external funding, "it would stabilize the situation," Constancio told reporters on the sidelines of a banking conference. Since late last week, several media reports have said that Ireland's finance minister was considering asking the E.U. for funds. Ireland Minister for European Affairs Dick Roche Tuesday repeated that the government doesn't see the need for external financial help, and said finance ministers "mustn't panic." "There is no reason to trigger a bailout from the EU or the IMF [International Monetary Fund]," Dick Roche told BBC radio. Canada Morning The Canadian dollar was sharply lower early Tuesday, on the U.S. dollar's broader gain and a decline in the price of oil. The U.S. dollar was up nearly 0.5% early Tuesday, at C$1.0145, from C$1.0082. Crude-oil futures fell more than $1 a barrel in London trading as euro-zone debt worries weighed on risk sentiment and a stronger dollar continued to compress prices. The Canadian dollar was unchanged after Canada's monthly manufacturing sales were reported to have slid less sharply than expected in September. Manufacturing sales slipped a less-than-expected 0.6%, as a production slowdown at automotive assembly plants offset year-high gains in vehicle manufacturing sales the previous month. The market expected a 0.9% decline. -By Andrew J. Johnson, Dow Jones Newswires; 212-416-3092; andrewj.johnson@dowjones.com -Karen Johnson, Nina Koeppen and Ulrike Dauer contributed to this article.

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